[FourtySeven]

The states will be collecting the federal sales tax.

Ok, I agree that could be an area where things could get a little nasty (confusing, muddled, etc). I would hope and assume however that the authors of HR25 would've put in their proposal something to regulate how each state would collect the money. A standard procedure in other words.

Again though, since there wouldn't be any complicated tax laws or loopholes or deductions anymore, I don't see how an "audit" could be justified for anyone. The institution that used to perform them (the IRS) is elimated, and the reasons (as trumped up as they are in most cases) for doing them are eliminated.

I can see no reason to believe differently at this time.

[ancient_geezer]

I would hope and assume however that the authors of HR25 would've put in their proposal something to regulate how each state would collect the money. A standard procedure in other words.

Refer to the legislation:

 

H.R.25

Fair Tax Act of 2003 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.25:

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`CHAPTER 4--FEDERAL AND STATE COOPERATIVE TAX ADMINISTRATION

`CHAPTER 5--OTHER ADMINISTRATIVE PROVISIONS