posted on December 5, 2004 10:15:04 AM new
California has a tax amnesty coming up in February and March, 2005. It offers you amnesty from prosecution for any un-filed, under-filed or under-paid tax. Yes some penalties or interest may be reduced.
There is a sneaky side to this. If you owe any tax there are going to be additional penalties added after April 1st, 2005.
My take on this: Now is the time to look through your old records and see if there is any chance you could owe any tax on any activity in California. If you have any possible exposure, send them a nickel ninety-eight. For a few bucks you get exempted from prosecution and fees. Why would you lie? You're trying to cut a deal to limit your exposure and expense, and send the taxman some money. If you make an error in calculations, your intent is obvious AND you came clean.
Now is the time to review your prior Internet transactions to see if you incurred any tax liability in California. For example: Let's say I purchased $60.00 over the Internet from outside of California in 2003. I file the amended tax form, 540X, and send it in with the amnesty forms. Voila, I pay them $5.00 and I am under the wire for 2003.
Another example: Let's say I sold $2000 worth of stuff on eBay in 2003. My expenses were $1,950 (nobody said I had to be smart about this), I file an amended 540 with the appropriate amnesty forms and send them a nickel ninety-eight.
Ahnold will take every little bit to limp the state budget along, and they do not have the man-power to verify all of the crap that will come in. They do have the computer power to unravel what has transpired on eBay for each and every individual. And eBay will roll, that's their avowed policy. So send Ahnold a small Christmas present and avoid the checkpoint that I sense down the financial road.
Personally I'm choking up $850. for taxes due from the year 2000. Yeah, I could candy ass them along some more, but I want to avoid the aftermath. You know, when they start getting aggressive and tacking on more penalties after the amnesty. Instead of the SS Ahnold is going to have the TT (tax trackers). Enjoy your chuckle.
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