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To: Always Right

I believe you're off on the wrong foot, here.

The Section you post is discussing taxes imposed and - if you have retained your shoebox full of receipts - you are quite in the clear regardless. It is the seller of the thing that has the problem here, not you the buyer. Now of course if you're the seller pulling some stunts that's quite another matter. Most sellers, if audited, would have to produce a number of records showing they collected and paid the tax but the buyer is protected SO LONG AS HE GOT A RECEIPT - it's not even clear that he even has to show these in any event since he has the presumption of innocence on his side and the burden of proof is on the government.

The seller (the one in the dispute with the gov't.) is the one who has the burden of production. Do you feel he's going to show in his documents somehow that you bought something and did not pay the tax?? If that is indeed your concern, as I've said, keep the shoebox full of receipts.


262 posted on 05/14/2005 9:29:32 AM PDT by pigdog
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To: pigdog

Do you feel he's going to show in his documents somehow that you bought something and did not pay the tax??

Of course under circumstances that such documentation is produced by the selller, the purchaser is in deep dodo because there would be prima-facia evidence that purchaser had fraudulently tendered an invalid certificate to evade that tax, pretending to be a business.

SEC. 505. PENALTIES.

(c) Reckless or Willful Assertion of Invalid Exemption-

 

`SEC. 103. RULES RELATING TO COLLECTION AND REMITTANCE OF TAX.

`(a) Liability for Collection and Remittance of the Tax- Except as provided otherwise by this section, any tax imposed by this subtitle shall be collected and remitted by the seller of taxable property or services (including financial intermediation services).

`(b) Tax to Be Remitted by Purchaser in Certain Circumstances-

`(c) Conversion of Business or Export Property or Services- Property or services purchased for a business purpose in a trade or business or for export (sold untaxed pursuant to section 102(a)) that is subsequently converted to personal use shall be deemed purchased at the time of conversion and shall be subject to the tax imposed by section 101 at the fair market value of the converted property as of the date of conversion. The tax shall be due as if the property had been sold at the fair market value during the month of conversion. The person using or consuming the converted property is liable for and shall remit the tax.

`(d) Seller Relieved of Liability in Certain Cases- In the case of any taxable property or service which is sold untaxed pursuant to section 102(a), the seller shall be relieved of the duty to collect and remit the tax imposed under section 101 on such purchase if the seller--

`(e) Purchaser Liable to Collect and Remit in Certain Cases- In the case of any taxable property or service which is sold untaxed pursuant to section 102, if the seller is relieved by reason of subsection (d) of the duty to collect and remit the tax imposed by section 101, then the duty to pay any tax due shall rest with the purchaser.

`(f) Barter Transactions- If gross payment for taxable property or services is made in other than money, then the person responsible for collecting and remitting the tax shall remit the tax to the sales tax administering authority in money as if gross payment had been made in money at the tax inclusive fair market value of the taxable property or services purchased.

`(g) Intercompany Sales- Firms that make purchases from affiliated firms that are untaxed pursuant to section 102, or make sales to affiliated firms that are untaxed pursuant to section 102, shall not need to comply with the requirements of subsection (d) (relating to certificates) for said purchases or sales to remain untaxed.


266 posted on 05/14/2005 9:54:33 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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