Who's going to do the auditing? The state? What's in it for them, the state tax?
That's not enough money to chase down every one-man "consulting" firm that puts a personal tank of gas on the corporate credit card once a month.
That's not enough money to chase down every one-man "consulting" firm that puts a personal tank of gas on the corporate credit card once a month.Actually, my state wouldn't tax your "one-man 'consulting' firm" so they wouldn't care much if you were cheating our not. All they get is one-quarter of one penny for every dollar they collect for the Feds. That's not worth a phonecall. So give it a couple of decades and what you will have is the states collect the voluntary compliers and the Sales Tax Bureau being just as onerous (or worse) to these businesses as the IRS is today.