Thank you for writing! Similarly, with personal income taxes, you’re wayyyyyy more likely to be audited if you make under 25k a year. I got audited one year as a student when I made 15k. It was so pointless - and turns out the feds owed me money too!
I read this article in the Times last year about how the earned income tax credit triggers audits, which, of course, means lower-income households. https://www.nytimes.com/2023/09/18/us/politics/irs-audits-black-taxpayers.html It shocks me that there isn’t more transparency and oversight about who is getting audited (both in business and personal) and what the results of those audits are based on income levels and other demographics. Auditors have too much power, it’s such an intimidating process.
I am an author who can't self-sell my own fiction, and who doesn't monetize my Substack, because of the State Sales Tax / Nexus complications involved. I don't have the time, expertise, or money to tackle this. Hence, the economy loses out on income (and Federal Taxes) it could be garnering from people like me who are not going to play 'chicken' with a potential audit. I understand that this year there will be a crackdown on those who decided to play the State Tax avoidance game. Good luck!
We file sales tax for businesses in a whole bunch of states, and I've never seen a program that helps at all with the processing fees, but have caught wind of some advocacy around this from restaurants:
Yes, this is EXACTLY what I'm talking about! Looks like there's a bill in Washington already, too. Need to do some homework around this. Thanks for sharing this link!
Thank you for writing! Similarly, with personal income taxes, you’re wayyyyyy more likely to be audited if you make under 25k a year. I got audited one year as a student when I made 15k. It was so pointless - and turns out the feds owed me money too!
I read this article in the Times last year about how the earned income tax credit triggers audits, which, of course, means lower-income households. https://www.nytimes.com/2023/09/18/us/politics/irs-audits-black-taxpayers.html It shocks me that there isn’t more transparency and oversight about who is getting audited (both in business and personal) and what the results of those audits are based on income levels and other demographics. Auditors have too much power, it’s such an intimidating process.
I am an author who can't self-sell my own fiction, and who doesn't monetize my Substack, because of the State Sales Tax / Nexus complications involved. I don't have the time, expertise, or money to tackle this. Hence, the economy loses out on income (and Federal Taxes) it could be garnering from people like me who are not going to play 'chicken' with a potential audit. I understand that this year there will be a crackdown on those who decided to play the State Tax avoidance game. Good luck!
We file sales tax for businesses in a whole bunch of states, and I've never seen a program that helps at all with the processing fees, but have caught wind of some advocacy around this from restaurants:
https://restaurant.org/education-and-resources/resource-library/state-bills-to-exempt-sales-tax-from-swipe-fees-would-be-huge-savings/
Yes, this is EXACTLY what I'm talking about! Looks like there's a bill in Washington already, too. Need to do some homework around this. Thanks for sharing this link!