Sales and Use Tax Audit

CurrentSea

CurrentSea

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Sep 23, 2002
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Ok, so I get this letter today. It says a bunch of stuff about paying proper sales tax. Then it says:

"Recenty, a survey of New York state marinas disclosed that the above listed vessel, of which you are identified as the owner, has been docked, moored or stored at a location within New York State"

Then it goes on to say they matched this against their files to determine if proper tax was paid. They say they are unable to verify tax payment.

The letter names my boat by name and proper length.

Now, when I bought my boat, I got it from Ocean Outboard in freeport and I paid the tax, after deducting my trade-in. So I know I paid it, but I curious why they are coming after me for this and how they got the name of the boat, it is not documented and it is registered as I got numbers and reggy sticker on it, that I put on.
 
Send a copy of the bill of sale End of story....

ROb
 
Sounds like Ocean Outboard may not have sent the taxes on to the state. Hopefully, you stil have the bill of sale that shows you paid the proper tax.
 
I have the bill of sale. Well it looks more like the contract, but either way it should be good enough. Plus they registered for me, so I don't think they could of registered it without paying the tax. I am thinking it could be because we bought the boat in my name and my wife's name before we were married. The registration is in my name, but when we claimed the sales tax deduction we claimed it on her tax return. If the dealer never paid the state the proper amount, that is not my issue. They collected it from me.
 
Nothing more then paperwork to get straight. Easy enough. This is why I have to laugh when the dealer from NJ yesterday at the show tells me I can buy in Nj & avoid the NY tax. Yeah, right. I buy a boat to get rid of my cares & worry not create new ones!!! I see them come around & check stickers at my marina once in a while. Maybe I should register in Delaware too & pay no tax? That's why they must sell & we buy? You have to know what risk is worth taking? This is a looser!
 
When you say "check stickers", what are they checking for? The registration?
 
Dave, they look for registration stickers and home ports. If you are docked in NY for more than a certain period of time (I think it might be 30 days), you are supposed to pay taxes on it.
 
Just spoke to Walter, who is in my marina and he got the same letter.
Any other AYC members get this?

We think they are looking for boats that are sold. So they check their records, then send out a notice to the registered owner and if he writes back that he sold the boat, then they caught someone. But if writes back with the bill of sale, then all is cool and legit.
 
Dave,

They are just looking for you to prove that taxes were paid. The way these guys work is that if taxes were not paid, they go after everyone and see who pays up. If Ocean collected the tax from you, you are in the clear. Just send them a copy.

If Ocean did not submit the taxes to them, they are in deep doo doo. The tax people can go after corporate officers personally.
 
Our tax dollars wasted again, all they had do is run the registration numbers on the boat, instead, they create this paper work, labor intensive meaningless audit. If they ran the registration they would have seen that my boat is registered as a 40”1” boat, not a 34’ boat, and the current registrant is the original owner and has an up to date current registration.

Maybe no one told them that you can’t register a boat or any other vehicle in NY State unless the sales tax is paid, so how can someone have a current registration if they did not pay sales tax?

In the mean time the rocket scientist, his department and superiors, cost us tax payers thousands of dollars for something that could have been checked out by a twelve year old that has a computer. Now multiply that by all the meaningless audits they do.

Now tell me that they went through my marina and saw out of state boats docked there or expired registrations then that would be a beneficial audit that could capture unpaid sales tax.

Just another example of are hard earned money being wasted away.

Walter
 
What is the NY state sales tax rate? I'm looking at a boat on LI that if purchased will be moved to Delaware in the spring. Will I be subject to NY tax if the boat is in winter storage?
 
Thanks, well, that was clear as mud. It sounds like since I'm not a NY resident and the boat will not be kept or used in NY then it will not be subject to NY sales tax. I'll check with the broker to get their take on this.
 
That is correct. If you're an out of state buyer not registering in NY no Tax is due you're exempt. You'll pay tax where you register in your own state.
 
Walter, you should definitely write a very nasty, threatening letter to the NY State Tax Department. Make sure that you insult each and every one of them personally, and mention that you have done dastardly things with their wives, daughters and pets. Just for yucks, send a copy to the IRS.

Make sure you include your full name, address, SSN and photograph of yourself.

I think they will probably send you a thank you note.
 
I can write one for him and send it in!
Don, Ask John if he got one. They must of hit all the AYC boats. Or perhaps Joelle in the office named names of people she doesn't like!
 
quote:
Originally posted by HOGAN

Walter, you should definitely write a very nasty, threatening letter to the NY State Tax Department. Make sure that you insult each and every one of them personally, and mention that you have done dastardly things with their wives, daughters and pets. Just for yucks, send a copy to the IRS.

Make sure you include your full name, address, SSN and photograph of yourself.

I think they will probably send you a thank you note.

Click to expand...


Mike,
Sad thing is, if I did do that, their second letter would ask, "who I am, and where do I live and do I have a case number".

Walter
 
quote:
Originally posted by CurrentSea

Don, Ask John if he got one. They must of hit all the AYC boats. Or perhaps Joelle in the office named names of people she doesn't like!

Click to expand...


Dave.......I spoke with John last night......said he hasn't got any such letter.
He said....the letters are probably being sent to all the members who don't " take care " of Joelle on the holidays.
 
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