Here's a neat parlor trick

[World Eater]

Lawyer sues companies that don't charge online sales tax and makes a bundle.

http://online.wsj.com/public/article/SB112924792244868264-_tMx7xjZSaV89CMWg9qkxcX0d3s_20061014.html?mod=blogs

I can't make heads or tails of this.

[begbert2]

IANAL, but what we have here seems to be a lawyer taking advantage of a "whistleblower" law to make money by pointing out where companies are not complying with the law. He didn't invent the legal requirement to charge sales tax, nor did her invent the "whistleblower" law. He's just using the situation to try and milk money out of the government. Other than spoiling everybody else's fun, he's not doing anything wrong; he's simply turning in crooks for a reward.

[Mrs. Cake]

Hmm. Beatsambulance chasing, that's for sure. The only part that surprises me is the whistle-blower law that's allowing him to get rich. The state revenue departments I've dealt with over the last 20 years would go two falls out of three with me for a nickel.

Okay, I'm also a little surprised that the accountants for these corporations with clear and obvious nexus all over the country would allow something like untaxed internet sales to occur. For a big retailer, state sales tax auditors always lurking just round the corner.

[smiling bandit]

Okay, I'm also a little surprised that the accountants for these corporations with clear and obvious nexus all over the country would allow something like untaxed internet sales to occur. For a big retailer, state sales tax auditors always lurking just round the corner.

AFAIK, it's not legally their responsibility. The seller doesn't have to charge sales tax for online sales. The buyer must pay it himself.

[Cheesesteak]

I don't know, bandit, if you are registered in IL as a sales tax collector, I would think that you would be required to collect sales tax on sales to Illinois residents. The mode of sale should not exempt you from that. Wal-Mart routinely collects sales tax in IL, but did not charge Mr. Diamond sales tax on merchandise sent to his Chicago home. If you don't have a presence in IL, and are not registered as a collector for that state, it then becomes the buyer's responsibility.

Really, there's no excuse for it, it's sloppy accounting.

[mhendo]

AFAIK, it's not legally their responsibility. The seller doesn't have to charge sales tax for online sales. The buyer must pay it himself.Read the article provided by World Eater.

It states very clearly that, while the law varies from state to state, many states do in fact require online retailers to collect sales tax if they have a "physical presence—a 'nexus' in legal terms—in the state." Furthermore, in the specific case of Illinois, it is defined thus:In Illinois, a retailer is considered to have a physical presence if a customer can return an item purchased online to a retailer's physical location.And the guy found that plenty of Illinois companies that meet the criteria were failing to charge sales tax.The only part that surprises me is the whistle-blower law that's allowing him to get rich. Me too.

It had always been my impression that whistleblower laws were designed specifically to get people to come forward with insider-type information that could not be discovered through normal channels, and that these laws were also designed to compensate people for ratting on their own employers or other business associates, because they would presumably be out of a job once they testified.

It seems rather odd that the guy is being compensated under a whistleblower law, given that the state agency could (and probably should) have checked these companies itself. Obviously, my understanding of how that law applies is incomplete.

[begbert2]

The only part that surprises me is the whistle-blower law that's allowing him to get rich. The state revenue departments I've dealt with over the last 20 years would go two falls out of three with me for a nickel.Last year, the attorney general's office negotiated a $2.4 million settlement with Wal-Mart, Target and Office Depot about uncollected sales taxes dating back to 1999. Mr. Diamond says that since he did all the legwork, he is entitled to the full 25% share plus any costs he incurred, which is allowable under the law. But the attorney general's office wants to pay him less than 25%, and nothing for his costs.Looks like they're trying for best two of three.

[Roland Orzabal]

Well, in a sense, I'm torn.

My logical side insists that there's nothing wrong here. I am not a tax protestor, therefore I agree that a sales tax is not an immoral thing. I do not believe that the method of payment for a given purchase should alter the total price in any way, therefore I cannot oppose sales taxes on online purchases. Though I do not consider it an individual's responsibility to report any crimes to which he/she may bear witness, I certainly do not believe it immoral to do so. Similarly, while I do not believe that an individual reporting a crime is necessarily due any reward for his/her actions, I see no problems with that person receiving whatever the state deems fair compensation. Add them all up, and this man did nothing wrong in my book. This sentiment is upheld by roughly 98% of my being.

The other 2%, however, thinks it would be nifty to buy a baseball bat online, not pay sales tax on it, buy a plane ticket online, not pay sales tax on it, fly to this guy's hometown, and hit him with the bat many, many times. Perhaps one blow for each penny of sales tax I did not pay. Because he's a moneygrubbing opportunist fucking douchebag who's a drain on humanity in general.

No worries, though. I won't be doing that.

Wouldn't want to be a part of any tax-evasion, you understand.

[PetW]

Because he's a moneygrubbing opportunist fucking douchebag who's a drain on humanity in general.

No worries, though. I won't be doing that.

Wouldn't want to be a part of any tax-evasion, you understand.

I gotta disagree with this. Some companies were getting away with shit that they shouldn't get away with, he caught them and made them pay the price, and made money on the side. I wish I would've thought of it/had the education to do it first.