I make pottery in my garage that I sell at craft fairs (I don't but for sake of argument). Will I be taxed? It's new goods right? Will the clay I buy be taxed? Am I buying it at wholesale or retail? Who will determine that? Who will audit my sales?
I make pottery in my garage that I sell at craft fairs (I don't but for sake of argument). Will I be taxed?
No. As a licensed manufacturer, you will tax your customer on the price of your finished product, and forward it to the feds, keeping a small percentage as a fee.
[More or less as you are supposed to do now with profits under the self employment income tax rules]
It's new goods right? Will the clay I buy be taxed?
No, seeing you are a licensed manufacturer.
Am I buying it at wholesale or retail?
Licensed, wholesale, & no tax. -- No license, retail & taxed.
Who will determine that? Who will audit my sales?
Your friendly folks at the Fair Tax Enforcement Division, who formally worked enforcing the IRS code, -- who else?
Paying Taxes is painful, -- whadayaexpect, - some sort of utopia?
I make pottery in my garage that I sell at craft fairs (I don't but for sake of argument). Will I be taxed? It's new goods right?
You will be required to collect and remit the tax from your customers, and provide a receipt for doing so to them keeping a copy for your business.
Will the clay I buy be taxed?
No, you are a certified business purchasing for business purpose.
Who will determine that?
You do, by selling to the public in general rather than another business.
Who will audit my sales?
The state tax authority of the state you live in.