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One customer decided he's tax exempt

Discussion in 'Business Fundamentals' started by JeffNY, Feb 23, 2010.

  1. JeffNY

    JeffNY Senior Member
    Messages: 484

    I started charging sales tax to the customer, and everyone paid, no questions, except one. Sent the check in without the tax, never called or anything, he calls himself a 'Reverend'. The property is his house.
    Im just not sure how this works, do I need some sort of tax exempt form for him to fill out?
  2. blk90s13

    blk90s13 PlowSite.com Addict
    Messages: 1,157

    Yep he must fill a form I think its a t-3 form ? business name tax ID number and all that good stuff

    being his house he stands no chance unless he have it setup as a place of worship

    good luck
  3. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 28,362

    Some churches have a house set up as a parsonage, so it could very well be tax exempt.

    Yes, get a tax exempt form from him if you don't believe him, or just file $xx.xx as tax exempt.

    We do it all the time with churches, schools, etc.
  4. JeffNY

    JeffNY Senior Member
    Messages: 484

    So I dont NEED the form filled out by him?
  5. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    Get it to cover yourself.
  6. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    Yes you need the form. ST-3 in NJ
  7. clark lawn

    clark lawn PlowSite.com Addict
    from NE ohio
    Messages: 1,233

    i dealt with this a few years ago, in OHIO if the house is owned by the church it is exempt if it is owned by him he pays tax.
  8. fireside

    fireside Senior Member
    Messages: 726

    In the state of ct. He must pay sales tax. If doesn't want to pay he must fill out a ct sale tax exempt form and provide a 501C or 503C depending on there set up(tax exempt fed forms) if not he pay's the tax. What it comes down to in ct is you are responsible to collect all due sales tax so if he does not pay you will for him for all services provided.
  9. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    You guy's have sales tax on services in your states? Ouch, big government is bad.
  10. viper881

    viper881 Senior Member
    Messages: 477

    Sales tax on service? Probably the next thing Michigan is going to do to get a lil more money
  11. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,891

    In Ontario they still pay, they just get it back from the government.
  12. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    It's mandatory in Ohio for plowing and salting services. Been this way for about the past 5 or 6 years. I don't remeber when it took effect.
  13. clark lawn

    clark lawn PlowSite.com Addict
    from NE ohio
    Messages: 1,233

    i think its been at least 10 maybe longer
  14. tuney443

    tuney443 PlowSite.com Addict
    Messages: 1,847

    ''The property is his house''.Unless he uses his house as part of a continuation of the church where he's hired AND fills out the Religious Exemption certificate once a year,he has to pay you the correct sales tax for your jurisdiction.I get the very strong feeling he's trying to evade paying the tax as his guise as a reverend.I get this once in a while--DON'T let him get away with it because if you don't collect the tax from him if he doesn't give you the form you will be liable for all the tax if you should get audited.
  15. plowzilla

    plowzilla Senior Member
    Messages: 290

    That the democratic way!!! The saying used to be" tax and spend". now its spend and tax!! Pretty soon will see a 2nd civil war if they keep this up:laughing:
  16. tuney443

    tuney443 PlowSite.com Addict
    Messages: 1,847

    Of course--this is NY.How else would our big shot politicians such as Eliot Spitzer be able to afford $5K an hour prostitutes and for all the other wasteful spending our state does, especially when it comes to NYC?Oh--no sales tax on prostitution,but that's only because it's still illegal.:laughing:
  17. plowbum

    plowbum Junior Member
    Messages: 9

    He should have a tax exempt form to supply to you, tell him you need a copy. I request a copy with churches and state run non profit organizations for my records and taxes. If they are legit there should be no problem for them providing it.
  18. icudoucme

    icudoucme Senior Member
    Messages: 367

    here is one form http://www.osc.state.ny.us/agencies/ac946.pdf

    You will need to keep a copy of this with your records/ acounting info. If he really is tax exempt he will have this form and have him make you a copy. Dont forget to check the address and name. If your bills/invoices are in his name and the tax exempt form is in the name of a church or non profit you'll have a problem. If he cannot produce the form he has to pay taxes: http://www.chemistry.buffalo.edu/documents/RFtaxExemptForm.pdf
  19. snowman55

    snowman55 PlowSite.com Addict
    Messages: 1,071

    hey plowzilla who would we fight? the fat lazy politicians or the fat lazy freeloaders? I think what we (all hard working self reliant americans) will eventually do is refuse to pay the taxes. what are they gonna do when all their power is gone because we quit giving it to them? vote republican and demand smaller government!!!!
  20. snowman55

    snowman55 PlowSite.com Addict
    Messages: 1,071

    why the hell is a preacher tax free? does his reading from a bible help society more than my landscaping? don't get me started our gov't is so quickly turning its back on the founders beliefs that made this the greatest most prosperous nation in the history of the world. It makes me sad to know my kids will never be able to reap the benefits of their hard work. Already today over 1/2 of your earnings are taken away from you and "spread around"