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Old 09-13-2015, 07:25 PM
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Location: NY
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Angry Unpaid New York Sales Tax on Boat...tax notice

I am a resident of NY. I purchased a Charter Boat 9 years ago. Thinking that because it was to be used commercially, I did not pay the sales tax. I have now received a notice from NYS sales tax that I owe taxes on that purchase. It does not ask for a specific amount. The boat, right after purchase was placed under ownership by an LLC of which I am a member. The State sent the notice directly to me. Here's what I now know based upon research. The vessel is not subject to tax if engaged in interstate commerce or commercial fishing. While I regularly fish in Connecticut waters, I am not sure that would qualify as interstate commerce. I have on occasion worked for the USCG research division requiring me to engage in activities in Ct. waters. There are companies out there that have offered to represent me for exorbitant fees and I am not sure they can get my tax exposure reduced. I probably owe 13k plus interest and penalties. Now, I know NY has a Voluntary Disclosure Program which will allow one to pay the tax and interest without penalty as long as the tax department has not sent a bill. They in fact have not, but they have notified me that I didn't pay tax on the purchase.
5 questions:
1. Is a sales tax consultant potentially helpful in this situation
2. Could I avail myself of the Voluntary Disclosure Program or will they say I can't because the notified me (even though they did not send me a bill)
3. Is there a way to achieve a sales tax exemption on this purchase?
4. Since I can't afford to pay more than the original sales tax, do the sales tax people ever show some compassion if you meet with them and explain the dilemma?
5. Do these sales tax specialists have angles that help them negotiate these types of bills?

Thanks in advance
Ray



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Old 09-14-2015, 02:15 AM
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Quote:
Originally Posted by Nitecapt View Post
I am a resident of NY. I purchased a Charter Boat 9 years ago. Thinking that because it was to be used commercially, I did not pay the sales tax. I have now received a notice from NYS sales tax that I owe taxes on that purchase. It does not ask for a specific amount. The boat, right after purchase was placed under ownership by an LLC of which I am a member. The State sent the notice directly to me. Here's what I now know based upon research. The vessel is not subject to tax if engaged in interstate commerce or commercial fishing. While I regularly fish in Connecticut waters, I am not sure that would qualify as interstate commerce. I have on occasion worked for the USCG research division requiring me to engage in activities in Ct. waters. There are companies out there that have offered to represent me for exorbitant fees and I am not sure they can get my tax exposure reduced. I probably owe 13k plus interest and penalties. Now, I know NY has a Voluntary Disclosure Program which will allow one to pay the tax and interest without penalty as long as the tax department has not sent a bill. They in fact have not, but they have notified me that I didn't pay tax on the purchase.
5 questions:
1. Is a sales tax consultant potentially helpful in this situation
2. Could I avail myself of the Voluntary Disclosure Program or will they say I can't because the notified me (even though they did not send me a bill)
3. Is there a way to achieve a sales tax exemption on this purchase?
4. Since I can't afford to pay more than the original sales tax, do the sales tax people ever show some compassion if you meet with them and explain the dilemma?
5. Do these sales tax specialists have angles that help them negotiate these types of bills?

Thanks in advance
Ray
I am a resident of NY. I purchased a Charter Boat 9 years ago. Thinking that because it was to be used commercially, I did not pay the sales tax. I have now received a notice from NYS sales tax that I owe taxes on that purchase. It does not ask for a specific amount. The boat, right after purchase was placed under ownership by an LLC of which I am a member. The State sent the notice directly to me. Here's what I now know based upon research. The vessel is not subject to tax if engaged in interstate commerce or commercial fishing. While I regularly fish in Connecticut waters, I am not sure that would qualify as interstate commerce. I have on occasion worked for the USCG research division requiring me to engage in activities in Ct. waters. There are companies out there that have offered to represent me for exorbitant fees and I am not sure they can get my tax exposure reduced.==========>I guess only God knows and perhaps it depends on the tax situation so I can not tell anything about it.

I probably owe 13k plus interest and penalties. Now, I know NY has a Voluntary Disclosure Program which will allow one to pay the tax and interest without penalty as long as the tax department has not sent a bill. They in fact have not, but they have notified me that I didn't pay tax on the purchase.=====>In NYS, Sales tax is applied to tangible personal property; Under the NYS Tax Department’s Voluntary Disclosure / Compliance program, ONLY eligible taxpayers owing back taxes and haven't filed related returns can avoid monetary penalties and possible criminal charges by telling the NYS tax Dept what taxes they owe; paying those taxes; and entering an agreement to pay all future taxes.
In essence, as you can see, you need to pay penalties and interest accrued since you purchased he commercial vessel whether or not the NYS has sent a bill to you.


5 questions:
1. Is a sales tax consultant potentially helpful in this situation=====>>As said above, I guess it depends on each specific taxation situation so I can not tell it.


2. Could I avail myself of the Voluntary Disclosure Program or will they say I can't because the notified me (even though they did not send me a bill)===> aslongas you've filed a timely tax return for the current tax year, but can't pay in full, the Voluntary Disclosure Program is not for you.
As mentioned above; please for more accurate info in detail , contact the NYS tax Dept.
3. Is there a way to achieve a sales tax exemption on this purchase?====>In my onion you need to directly contact the NYS for more accurate info in detail. Department of taxation and finance ..



4. Since I can't afford to pay more than the original sales tax, do the sales tax people ever show some compassion if you meet with them and explain the dilemma?=========> You need to contact Civil Enforcement Division to learn more about setting up your payment plan


5. Do these sales tax specialists have angles that help them negotiate these types of bills?====== Possibly; they may help you within NYS deal with the long reaching, and often aggressive, arms of the NYS however, you may need to a CPA/IRS Enrolled Agent in your local area for the info that you want.



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Old 09-14-2015, 02:20 AM
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NYS exempts from sales and use tax on commercial vessels primarily engaged in interstate / foreign commerce, in order to qualify for the NYS sales exemption, “50 % or more of the receipts from the vessel’s activities” must be “derived from interstate / foreign commerce.”



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Old 09-14-2015, 06:25 AM
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Join Date: Sep 2015
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Sales tax

So in other words, I'm in big trouble with no way out



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Old 09-14-2015, 01:37 PM
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Quote:
Originally Posted by Nitecapt View Post
So in other words, I'm in big trouble with no way out
sO AS SAID, You need to contact nys Civil Enforcement Division to learn more about setting up your payment plan



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