Tax Returns??

[lindac871]

I have received a letter from my state saying that I have files that haven't been returned for taxes & I have 15 days to get this done. The problem is that I haven't ever received a letter like this & I've been selling for over 15 years! So, what in the world do I do??? I really need help on this please.

[golfingaddict]

If you have been selling for 15 years it is a good chance that you owe state taxes for 15 years.

It has caught up to you.

I would contact a good CPA or Tax Expert or Tax attorney.

You are going to need to file taxes for those years.  

[heckofagame]

What kind of taxes are we talking about? 

[dhbookds]

I have files that haven't been returned for taxes

have no idea what that means........should be a phone # on the letter to call and ask what it's about......

If it's ebay stuff..........1099.........you should be reporting sales (and then taking deductions).....have  you been doing that?

[stainlessenginecovers]

Does it say 'you haven't 'filed'?? Because letters from the states don't ask for 'files'. 

Have you filed your state income tax every year?

[golfingaddict]

After you take care of the state taxes you should file with the IRS if you have failed to do that as well.  You can file amended tax returns if you need to change them to report eBay income.

[golfingaddict]

Interesting that you are asking today.

A year ago you posted nearly the exact same thing.

Taxes - The eBay Community

Are you talking about not reporting sales tax?  In Kansas, eBay collects and remits sales tax for you.  But in many states, you still have to report your sales information even though eBay remits the tax.     You should contact them to see what you are required to do.

• Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy state income taxes, while New Hampshire doesn’t tax earned wages.
• States with no income tax often make up the lost revenue with other taxes or reduced services.

[dirk12955]

The OP needs to re-read the letter and see if it's 

Income tax or sales tax the state is asking about.  

[dhbookds]

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@golfingaddict wrote:

Interesting that you are asking today.

A year ago you posted nearly the exact same thing.

Taxes - The eBay Community

Are you talking about not reporting sales tax?  In Kansas, eBay collects and remits sales tax for you.  But in many states, you still have to report your sales information even though eBay remits the tax.     You should contact them to see what you are required to do.

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@golfingaddict             good catch

[martin2001]

You won't get much help because it is not clear at all what you are talking about. Why don't you post the copy of the letter?

I have files that haven't been returned...? What does that mean? Do they say that you have not filed a tax return ? For which year? Have you ever filed a tax return? State? Federal?

Or perhaps it is a scam?

[mam98031]

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@stainlessenginecovers wrote:

Does it say 'you haven't 'filed'?? Because letters from the states don't ask for 'files'. 

Have you filed your state income tax every year?

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I don't think Kansas has an income tax.

[monica-sells]

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@martin2001 wrote:

You won't get much help because it is not clear at all what you are talking about. Why don't you post the copy of the letter?

I have files that haven't been returned...?

What does that mean? Do they say that you have not filed a tax return ? For which year? Have you ever filed a tax return? State? Federal? Sales Tax?

Or perhaps it is a scam?

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reposted with emphasis......

[caldreamer]

Even though EBAY has started collecting "sales tax" and remitting that money to your state....most states still require you file "sales tax form" anyway. 

EBAY has "easy to read" 1-page report that shows YTD total for (gross sales/order, EBAY fees, refunds,  shipping expense).  Go to Payments, Reports, REPORTS (NEW) and select LAST YEAR.

 "$50,000 orders/gross USA sales (shown on EBAY report) 

- $10,000 shipped to KANSAS location (you need to figure this out)

-       $500 REFUNDS (shown on EBAY report)

-     $1,000 SHIPPING EXPENSE (shown on EBAY report)

=$38,500 total OUTSIDE KANSAS

You need to know above numbers for "state sales tax" report.   IMPORTANT:  on the tax form click on box to show EBAY as "facilitator who collected sales tax on your behalf".    When you show EBAY as facilitator you are NOT liable to pay sales taxes. 

If you have a small business administration is your area maybe they can help you fill out this form.   Also be aware that all "gross income" must be reported to IRS also.   You can get information from above mentioned EBAY report.

IRS requires that you report "gross sales" (as shown on EBAY report) and then deduct business expenses (refunds, EBAY fees, shipping expense) and other expenses (cost of goods, mileage, packing materials, office supplies, etc).  

Gross Sales

-  Expense

= Net Sales (taxable Federal income)

[mam98031]

@lindac871 

You are not likely wording this the exact way it was in the letter which is causing some confusion here.  We are happy to try and help you, but we need some clarity.  Would you mind posting the letter here, making sure you black out any personal information.

Since your state does not have an Income tax, it is likely referring to sales tax.  

Do you have a business license with your state?  Do you file with your State Department of Revenue each year.  It could be monthly, quarterly or yearly, depending on what they require of you?

In the state I'm in, I report my sales to my state.  Since I'm just a small business, I get a tax credit and don't owe Business taxes, but still I need to report.  I also report what sales I had Retail within my state and then I deduct the amount that my various online marketplaces have collected and remitted on my behalf.  And end up with owing nothing for that as well.  But still they want it all reported.

I hope you will post the letter so we can better help you.

[dirk12955]

"Files that haven't been returned"

I'm wondering if Our OP is supposed to be filing the paperwork for sales tax and has not done so.    After 

some time passes,   The state will start sending notices for payment with estimated $$ amounts collected

 and owed to the state.

If the state contacted the OP last year, and nothing was done by the OP in response,   The state of Kansas 

will do the work for them and estimate what they (The OP)  owes.

Of course it's all guesswork since the OP hasn't clarified what "Taxes"  we're talking about.