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NJ tax audit for cigars?

3/5King

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Holy shitballs, Batman! I had no idea. I guess I should've asked retailer. So essentially all my past interstate transactions with out-of-state vendors over the last three years (California statute time) are still outstanding with the California tax bureau? And they could collect unpaid sales tax on all those transactions over the last three years tomorrow, if so inclined?
Yes. That is why it asks, when you do your taxes, if you've made any out of state purchases. It's the responsibility of the tax payer to be honest. Although I'm sure only a small amount of people get hit, like with audits.
 
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Yes. That is why it asks, when you do your taxes, if you've made any out of state purchases. It's the responsibility of the tax payer to be honest. Although I'm sure only a small amount of people get hit, like with audits.
^^^^THIS^^^^
Generally, something happens to cause auction though. The most likely scenario is a sales tax audit on the vendor. Its also not possible to check every transaction so they spot check certain ones. It is rare, but it can and does happen.

Before I went corporate, I was in public accounting for a year. We dealt with sales/use tax issues all the time there, however during tax season I can't recall a single person listing their out of state purchases.
 

Mr. McSquirelly

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California residents, here is the interstate statute per State Board of Equalization:

If consumers purchase cigarettes or tobacco products for their own use from outside the state without paying California excise tax, they are required to report and pay the tax directly to the BOE. This includes products purchased through the mail, by telephone, or via the Internet, that are shipped into California. Consumers also owe the taxes if they physically bring more than 400 cigarettes into California. These purchases are also subject to California use taxes. For information regarding California use tax, please visit www.boe.ca.gov/ sutax/usetax.htm#Overview

Not to worry, but just a heads up.
 

memphsdad

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California residents, here is the interstate statute per State Board of Equalization:

If consumers purchase cigarettes or tobacco products for their own use from outside the state without paying California excise tax, they are required to report and pay the tax directly to the BOE. This includes products purchased through the mail, by telephone, or via the Internet, that are shipped into California. Consumers also owe the taxes if they physically bring more than 400 cigarettes into California. These purchases are also subject to California use taxes. For information regarding California use tax, please visit www.boe.ca.gov/ sutax/usetax.htm#Overview

Not to worry, but just a heads up.
They already rape us enough on the daily, I'm used to them giving me the no lube treatment.
 
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California residents, here is the interstate statute per State Board of Equalization:

If consumers purchase cigarettes or tobacco products for their own use from outside the state without paying California excise tax, they are required to report and pay the tax directly to the BOE. This includes products purchased through the mail, by telephone, or via the Internet, that are shipped into California. Consumers also owe the taxes if they physically bring more than 400 cigarettes into California. These purchases are also subject to California use taxes. For information regarding California use tax, please visit www.boe.ca.gov/ sutax/usetax.htm#Overview

Not to worry, but just a heads up.
This isn't a California only thing, it applies to all states. For example if your state has sales tax on groceries, and you buy a pack of Ramen Noodles out of state to bring home and eat, you are obligated to report it and pay sales tax to your home state
 

Mr. McSquirelly

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This isn't a California only thing, it applies to all states. For example if your state has sales tax on groceries, and you buy a pack of Ramen Noodles out of state to bring home and eat, you are obligated to report it and pay sales tax to your home state
Yes. That is why it asks, when you do your taxes, if you've made any out of state purchases. It's the responsibility of the tax payer to be honest. Although I'm sure only a small amount of people get hit, like with audits.
I really appreciate the information you've provided. I never took to the time to look into it. Cigars are really the only thing I purchase out-of-state. And I never declare cigars on my taxes. I didn't think for a second that there could be interstate audits between tax bureaus and retailers. Very good to know. I'm gonna get on the horn with my main retailer today and find out how often they get audited. If it happens frequently, I'll have to pay up I guess. The last thing I want are delinquency fines for each transaction. Thanks again, fellas.
 
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I really hope this isn't a sign of more to come (from Chicago/Ill.) .......The ironic part was I was playing a "mule" to save someone in Chi. from the taxes to begin with. Lol!
this is true - our tobacco taxes suck. 30-ish % with no cap, along with other fees. try it on Casa de Montecristo's retail site:
a box of tat jackyls is roughly 140$. if you order from out of state, it is 140$ delivered.
then... change the destination zip code to 60611 (chicago) and boom... 202$.


at least it isnt Utah, where only the richest 4 kings in Europe can afford a cigar.
 

Cigary43

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Got one of "those" letters when I was ordering cigars from other states and I sent the letter back with this explanation: Don't know anything about this but appreciate that you sent me a letter that tells me some scoundrel hacked into my account and bought themselves some cigars.

Since the state from which the cigars came from can't prove that the cigars were ordered by me exclusively they can't tax me for the purchase unless they filmed the delivery and me smoking it at my home....they were/are SOL. Never heard back from the state that sent the letter nor does the state enter into a case w/o positive proof of who bought the product. Internet sales are the most proliferating types of purchases where they go unchecked by the millions unless the receiver makes a claim of not receiving product or that their account was hacked.

States will try and source out unpaid taxes by going after the most basic and simple Sin Tax products...interstate sales are easy because they threaten the Business that sells the product to release their records of sales and that's how they get addresses. They count on their letterhead to scare the $hit out of people to cough up money....what they don't like is when people fight back with common sense logic like.....prove that I ordered it and not somebody else...prove I smoked the product...prove that it was delivered to me....prove prove prove.
 
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- one one hand its a small fine and easier to pay than to have this come back and bite you i the ass with a collection notice.
- on the other, if you pay it gives them recourse to look at any other purchases.
time to have a drink and smoke a stick :cigar:
 
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they can't tax me for the purchase unless they filmed the delivery and me smoking it at my home....
...prove I smoked the product...prove that it was delivered to me....prove prove prove.
you dont have to USE it, just purchase it. have you ever bought a grocery item (such as milk, eggs, etc) and never use it? im sure we all have at one point. i paid taxes on it. just because i never used it doesnt mean i get my taxes back.

in the end, i would just pay the tax. does it suck? yes. HOWEVER... imagine telling them to "prove, prove, prove" (as you put it)... and they get pissy and actually dug into ALL of your online tobacco purchasing history? if they get the solid "proof" and you got taxed on every tobacco purchase made since you entered the hobby, you'd probably have to dip into your 401K to pay it off.

choose your battles. this one doesnt seem really worth it.
 
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Got one of "those" letters when I was ordering cigars from other states and I sent the letter back with this explanation: Don't know anything about this but appreciate that you sent me a letter that tells me some scoundrel hacked into my account and bought themselves some cigars.

Since the state from which the cigars came from can't prove that the cigars were ordered by me exclusively they can't tax me for the purchase unless they filmed the delivery and me smoking it at my home....they were/are SOL. Never heard back from the state that sent the letter nor does the state enter into a case w/o positive proof of who bought the product. Internet sales are the most proliferating types of purchases where they go unchecked by the millions unless the receiver makes a claim of not receiving product or that their account was hacked.

States will try and source out unpaid taxes by going after the most basic and simple Sin Tax products...interstate sales are easy because they threaten the Business that sells the product to release their records of sales and that's how they get addresses. They count on their letterhead to scare the $hit out of people to cough up money....what they don't like is when people fight back with common sense logic like.....prove that I ordered it and not somebody else...prove I smoked the product...prove that it was delivered to me....prove prove prove.
A post on a public forum might give them proof. . .
 

Cigary43

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A post on a public forum might give them proof. . .
Thank God for Facebook where anybody and everyone can post what they ate or drank or smoked because if it's one thing we need more of...is less privacy and living in fear of what 'might' happen. There's a reason why a turtle has a shell.
 
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Once a government agency knows it can get money out of you (for example, if the OP pays that bill without challenging it), that agency is far more likely to come after you for more money in the future.
 
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