Sales Tax Evasion

[ScottLewis]

A retailer that I know of, based in the midwest, has sales representatives who permanently reside in California. According to CA law, any retailer that has a nexus with California is regarded as "engaged in business", and the company must register to pay sales/use tax for all items sold in CA. The same law states that having sales reps in CA definitely qualifies as having a nexus.

This company has never paid a dime's worth of sales tax in CA. I'm guessing that it has sold well over $1M worth of products just in CA over the last few years.

If "someone" were to notify the California BOE (Board of Equalization), how soon would an investigation of this company begin and when would the company be notified over their massive amount of backtaxes?

The company's president and sales reps are true weasels, and they're about to get what they deserve.

 

[compuwiz1]

Why? Are you a snitch or something?
If those transactions were ordered on the internet, from a company not based in CA, then no sales tax is due. You look like a sh!t stirrer with this post...that's what I see.

Edit: Jr. member with 5 posts under your belt....no, you are a Troll! :|

 

[ScottLewis]

Compuwiz,

Sorry if it looks like I'm trolling but I'm not. I don't see how I'm "sh!t stirring" either... this isn't really a controversial topic.

Just wondering if anyone has any experience with this type of scenario.

 

[cirthix]

So you want the confederate to send some probes to their nexus to see if they are stealing minerals?

 

[Eli]

Originally posted by: cirthix
So you want the confederate to send some probes to their nexus to see if they are stealing minerals?

 

[tm37]

Nexus laws Vary by State.
Is the sales person is not an employee then there is no nexus for the company.

I work for a medical device manufacuter and I have a distributer in CA. If they buy from my rep (not an employee) then they pay tax.

If they buy direct no tax as I have not astablished nexus.

 

[ScottLewis]

The rep calls himself a "Sales Executive". I'm pretty sure he's an employee and not just a consultant.

 

[AgaBoogaBoo]

I won't say whether you should or not, but be careful and don't get yourself into something that could be an issue for yourself later.

 

[alm4rr]

it's simple

call the tax department for ca
snitch on anonymous hotline
profit (from reward $$$)