eeyore1954
Philosopher
- Joined
- Jun 9, 2006
- Messages
- 6,811
I can vouch for that. When I first opened my coffee shop I treated it like extra income but then on the 20th each month you have to start mailing checks and it can cause problems. Found its much much smarter to deposit sales tax into a separate account and only use it if you have to. I certainly don't consider it a part of paying my own or my business' taxes. I think of it as something nice I do for the state because that makes writing those checks a little easier.![]()
Although this is a problem for businesses and they have to be very careful because if they end up short on any tax collected from customers or employees (w/h or FICA) the legal problems and penalties can be severe.
But I was referring to small cash business that collect sales tax without ever intending to report it.