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Reporting sales tax fraud.

Reporting sales tax fraud.

gr33ngerbil
Adventurer

Greetings,

 

I notice the latest shtick on ebay is for sellers to charge "sales tax" to all 50 states wherever they are. When doing a search by price the sales tax doesn't show up until you click buy it now. If you were bidding you wouldn't know until the end unless you carefully checked the shipping/payments page and expaned the list. Some sellers do this from china or their US shipper. When all states list: "* Tax applies to subtotal + shipping & handling for these states only" and incorrect percentages, you know its fraud.

 

So I know that I can always refuse to buy and that's well and good but how can we report them to someone that will actually care (ie not ebay)? These guys have sold 50k+ items and I'm sure the states would love to get their hands in the pot. If they have items in the USA the government could sieze them. I can usually find more honest sellers but sometimes I can't and the only other option is amazon or ali where this fraud can't occur (or at least haven't seen it).

 

My main beef here is that just like the ebay reports most other places appear to send your complaints into the ether and the fraudsters keep going. Where do I go to actually have some effect?

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Message 1 of 32
31 REPLIES

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 11, 2017 9:01:39 PM
hafoster
Rockstar

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?

1,764 Views
Message 2 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 12, 2017 7:05:55 AM
Rockstar
It's mostly sellers in China. eBay doesn't care what they do.
Patricia
Joined eBay May 28, 1999.
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Message 3 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 12, 2017 1:13:03 PM
gr33ngerbil
Adventurer

if I saw 25% I would never buy it. 8-10% is what I usually see. Masquerading as legit sales tax. Warehouse in California but taxes in all 50 states. I'm sure they have a presence in American Samoa or Palau /S

 

I googled this for CA: http://www.boe.ca.gov/help/rtpfraud.htm

Not sure about the effectiveness. Ebay doesn't even care about them stealing their fees back because it comes from the customers. IMO they should remove Chinese based sellers ability to collect taxes at all. If they have a US shipper that REALLY remits taxes let them add it to the price. If they'd like to be really serious, ask for tax collection ID, its not SSN for sales tax.

 

For EU people if they take 25% then you are paying VAT twice. Once at shipping and once to the seller.

 

IMO this is SERIOUS legal liability for ebay. Not just skirting taxes but actually stealing taxes, I surmise it is arrestable. In ebay's case the state AGs can collectively sue.

 

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Message 4 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 12, 2017 3:04:21 PM
hafoster
Rockstar
1,720 Views
Message 5 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 12, 2017 3:54:01 PM
gr33ngerbil
Adventurer
Last Edited 11:10:46 AM dm_karen

I've read all of those and they answer very little. 

1,713 Views
Message 6 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 12, 2017 4:25:52 PM
brooklynbattles
Adventurer

I had someone recently try to pull this garbage with me.  He was a personal seller iin Texas with no store located in New York.  Under the law he cannot collect sales tax.  If you see this with a seller located in the United States I would first contact your states local department of taxation and finance 

1,709 Views
Message 7 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 13, 2017 8:22:44 AM
hafoster
Rockstar
1,686 Views
Message 8 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 13, 2017 12:14:21 PM
gr33ngerbil
Adventurer

It seems the mods got to a post even though from the linked rules page: "Note: User IDs aren't considered personal contact information"

 

 

Its great that ebay has the time to prune my posts but not do anything about the problem. What is also deleted is the fact that with amounts $1000-$10,000, depending on the state, this act is a FELONY.

 

Yes, I am not kidding. I looked it up for TX and CA.

 

A seller repeatedly collecting sales tax on 50,000 items can reach these amounts easily. Furthermore each state they ship to would be a separate case and its really sad that ebay is enabling this behavior.

 

1,655 Views
Message 9 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 13, 2017 2:16:00 PM
d-k_treasures
Rockstar

@hafoster wrote:

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?


Very easily - provided they give it to a 6th grader or above ...

 

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Message 10 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 14, 2017 11:42:08 PM
m-rpw-ca
Pathfinder

It's actually very simple.

I was almost scammed on this today and the seller was adding 10.5% in sales taxes for merchandise being shipped from California to New York, where the top rate is only charged inside New York City and even then, it maxes out at 8.875%.

So the first thing is that they could program the system to validate all sales postings. 

- Their bots could be programmed to look for sales tax charges by individuals. 
- They can also look for fraudulent tax rates (or perhaps better yet, precode the sales tax rates into their system to prevent inflating them). 
- Lastly it is simple enough to require that a tax registration number be entered for each state in which the seller wishes to charge sales tax - and their bots can even validate the licenses, if not physically, then by format.
- The next thing they could so is to look at the numbers of states for which tax is being charged - in the case I stumbled upon they were charging taxes in 47 states and not one had a tax rate of less than 11%, including AK.  Really?
- Then they can also look at where the seller is registered.  In the cases I've run into so far the sellers have all been registered in China.

All it requires is the will to stamp out the fraud.

1,617 Views
Message 11 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 16, 2017 12:19:32 PM
Community Team
Community Team

@hafoster wrote:

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?


Due to the volume of varying tax laws in different locations this is not something we are qualified to take action on. We advise our sellers to work with a tax specialist to determine the appropriate amount to charge and if you run into anything you feel is excessively inflated you are welcome to report this to your local tax authorities. They will be able to review and take appropriate action. 

If any members response helped, please give it a Helpful. If you are the author of a thread and one member's response resolved your question, please click 'Accept as Solution.' More on Accepted Solutions.

1,601 Views
Message 12 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 16, 2017 1:30:12 PM
thatsallfolks
Rockstar

trinton@ebay wrote:

@hafoster wrote:

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?


Due to the volume of varying tax laws in different locations this is not something we are qualified to take action on. We advise our sellers to work with a tax specialist to determine the appropriate amount to charge and if you run into anything you feel is excessively inflated you are welcome to report this to your local tax authorities. They will be able to review and take appropriate action. 


How are my local tax authorities supposed to take action against a seller in China?

1,593 Views
Message 13 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 16, 2017 5:25:18 PM
usmc*usnmom
Rockstar
Last Edited 05:26:28 PM

trinton@ebay wrote:

@hafoster wrote:

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?


Due to the volume of varying tax laws in different locations this is not something we are qualified to take action on. We advise our sellers to work with a tax specialist to determine the appropriate amount to charge and if you run into anything you feel is excessively inflated you are welcome to report this to your local tax authorities. They will be able to review and take appropriate action. 


This would be SO INCREDIBLY EASY to fix - NARU the seller. Wham, done. These sellers are openly commiting FRAUD, and Ebay is complicit in allowing them to continue once they've been reported.

 

This is how Ebay takes care of their buyers?? Allowing fraudulent sellers to continue selling?


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Message 14 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 16, 2017 7:40:11 PM
hafoster
Rockstar
Last Edited 07:45:10 PM

trinton@ebay wrote:

@hafoster wrote:

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?


Due to the volume of varying tax laws in different locations this is not something we are qualified to take action on.


https://s8.postimg.org/p1qikkh5x/image.pnghttp://cgi.ebay.com/ws/eBayISAPI.dll?ItemSalesTaxTable&item=252470901669

1,576 Views
Message 15 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 16, 2017 7:50:57 PM
notjustcollectibles
Trailblazer
Attorney General or the Dept of Justice....
1,573 Views
Message 16 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 17, 2017 4:29:37 PM
gr33ngerbil
Adventurer

Yep this is what I see. Taxes charged for every state. Reporting them does nothing, there isn't even an option that fits. The people viewing the reports aren't able to find out why you reported it.

 

IMO this is much worse than not charging tax.

1,555 Views
Message 17 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 18, 2017 1:06:01 AM
Last Edited 01:10:31 AM

taxes are really charged by county within a state and vary, but yes there is no state or county that charges that much.

to the OP, i would just call the state comptroller office for every state and report them . those people do NOT play. that is highly illegal

 

to begin with, a person can only collect sales tax if they have a rep of the company in a direct or indirect fashion in that state (an by law they have too). if they have a warehouse or business employee in every state, then that covers the 50 state, but no not the tax rate, and thats still illegal

1,544 Views
Message 18 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 20, 2017 2:00:15 AM
hafoster
Rockstar

trinton@ebay wrote:

@hafoster wrote:

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?


Due to the volume of varying tax laws in different locations this is not something we are qualified to take action on.


trinton@ebay, how can eBay programmatically take action on pages CGIed by eBay?

 

http://cgi.ebay.com/ws/eBayISAPI.dll?ItemSalesTaxTable&item=222363758810

1,517 Views
Message 19 of 32

Re: Reporting sales tax fraud.

Re: Reporting sales tax fraud.

in reply to Feb 22, 2017 3:02:20 PM
Community Team
Community Team

@hafoster wrote:

trinton@ebay wrote:

@hafoster wrote:

trinton@ebay, how can eBay programmatically check listings for 25% sales tax in every state?


Due to the volume of varying tax laws in different locations this is not something we are qualified to take action on.


trinton@ebay, how can eBay programmatically take action on pages CGIed by eBay?

 

http://cgi.ebay.com/ws/eBayISAPI.dll?ItemSalesTaxTable&item=222363758810


I'm noticing an increase in reports of concerns like this. I'll gather up the information that has been shared here on the board and pass it along to our policy teams for review, no problem!

If any members response helped, please give it a Helpful. If you are the author of a thread and one member's response resolved your question, please click 'Accept as Solution.' More on Accepted Solutions.

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Message 20 of 32