Thanks for the info, you made it easy to understand. BTW, if anyone needs to fill out a , I found a blank fillable form here. This site PDFfiller also has some tutorials on how to fill it out and a few related Tax documents that you might find useful.
In some ways, this parallels the treatment of U.S. citizens who live and work out of the U.S. and who have absolutely no residence of any kind in the U.S. What this willingness to twist language actually means is that a moral cancer is progressively destroying us. This has very real consquences down the road. I refer to social instability.
California tells me that a corporation I own in another state must be registered in California as well, just because I happen to have a part time residence here (and another business). Never mind that the out of state corporation is a service business that has no out-of-state revenue at all.
I told my tax accountant I wouldn't register. We'll see if they come after me. A friend with a Wyoming corp has already been told he owes 4 years of back registration fees + penalties.
Government is not your friend.
As an observer of USA politics from afar I have over the years come to the conclusion that it will destroy itself before the 250th anniversary.
What the piece expounds is dirty deals by political parties of both sides with corporate patrons feather beading and gouging not locals but the small to medium businesses that are the backbone of any economy from interstate.
It reminds me of the Boston Tea party and taxation with representation in 1760s.
USA's future bodes poorly. Congress' procrastination shows how partisan and corrupt governing in USA is now. Companies like Apple Google and Microsoft with trillions in untaxed profits can claim good citizenship for free and Main street as I've seen decays to empty blocks and are still taxed by every state and municipality who are unwilling to raise taxes on their own voters.
Value Added tax (VAT) or General Service Tax (GST) run federally is the only solution to the problem of NOT IN MY BACKYARD voters who see raised tax, stored toxins or reduced services as a loss of fundamental rights. Oh those Fundamentalist Beliefs!
Regulate it and tax it. That is the reality of government today. I'm never surprised that each year my state legislator's convene, they find a myriad of new things that they somehow have missed taxing in the past and don't hesitate to add them to the ever growing list.
Next on the agenda is taxing the air we breathe. It will happen.
I have an outrageous state tax story to share. I left NY state in 2002,after living there and working for about 3 years (I'd also grown up there)and moved to Washington state and married a man who'd spent a grand total of 3 days of his life visiting me in NY. I filed NY state tax, and they wrote back and forced me to re-file and include HIS income in my tax calculation. When I protested, they sent me a copy of the tax law ALLOWING this. So I would up paying hundreds of dollars for NY state income taxes on the income of a man who had never even LIVED there.
Democrats lost America's first Civil War because they enslaved Black people. Democrats are going to lose the second Civil War because they attempted to enslave the rest of us.
Oh, you are all such big meanies! How can you protest that the states are sucking money out of your pockets? After all, they have to pay for Wonderful Things like this -- New York State's "Dream Act"!
I got this missive from Sheldon "Shelly" Silver, NY State Leftist Oligarch, just last week:
"I believe that all New Yorkers [sic] deserve the opportunity to pursue higher education so that they can follow the path of their dreams. That is why, today, the Assembly has passed the New York DREAM Act, which opens the door for thousands of young people to go to college and improve their lives.
"With this legislation, students who have attended high school in New York would be eligible for state tuition aid regardless of their immigration status [or criminal status]. It would also establish the DREAM Fund, a private [sic] scholarship program, and increase access to the New York State College Tuition (529) Program. It is a moral [sic] imperative that we provide these opportunities to the countless immigrant youth who have known no other home."
Hey, anyone who happens to be physically present is automatically dubbed "a New Yorker." Isn't that neat?
Oh, it'll be expensive, you say? well, that's what all this shakedown stuff is all about. Of course, the politicians deserve to keep some money for administrative expenses: say, about 95%.
Only the Senate stands in the way of this. We'll see.
What a fantastic article. Full of facts and informative.
I have a facebook group page dedicated to Internet Sales Tax
I will be adding news articals on the subjects of this blog post as well.
Don must be unable to read the dates in this article. This practice began before Obama. Not everything is about Obama.
I found this to be a really interesting article.
And the difference between the State of New Jersey and Somali Pirates is...?
What an excellent article. I watch carefully when making online purchases for greedy taxes but had no idea of the torture these progressive states were putting businesses through. This article shows clearly how business die under tax hungry states. Kudos to Mr. Malanga for exposing these vicious pig states. May 2014 turn the tide.
May I propose a radical "new" slogan -- "No taxation without representation." A state should only be allowed to tax its residents. In rough effect, the voters would check their legislators.
And, to be wildly "radical," let's do away with corporate taxes and shift that obligation to the owners. The corporations shift pass their taxes on to individuals anyway.
In short, make the burden of taxes transparent to the voters who elect the representatives who impose the taxes.
Many psycological associations have documented the trend that a majority of serial child molesters were molested as kids. We became the USA because King George mercilessly taxed us, his subjects, without representation. Now we in turn have become King George incarnate. Rush Limbaugh vows never to do a single show from New York anymore. Even though he's been gone for several years, he is audited each year. Our govts, local and federal, need some sort of psychological intervention in order to break this pervasive behavior.
You gotta love New Jersey. They ain't weeny libs like California and Oregon, say. They are full-throated gangster criminals. Wait till they finally get rid of Christie and the Dems come back with a vengeance. Grab your wallet and run!
Ever since the election of Barack Obama, it has been open season on the wealth creators in this nation. The Super Blue states are just following his lead and are ramping up their engines in pursuit of revenues to feed their union cronies and non-productive residents. To them, it doesn't matter that the wealth creators have a presence in their state or not.
We are rapidly becoming a nation of "makers" and "takers". The only solution is to have a citizen revolt against the Blue State governing class and to send the union bosses and bureaucrats into permanent exile in Iran
What I wonder is how many people and the amount of their salaries and benefits, are necessary to enforce these tax rules and to collect the taxes? You also have office space, telephone fees, computers, hardware, software, etc. to pay for, not to mention the costs of Legal Fees, in filing and pursuing alleged "Criminals"..
Small states siphon off revenues from the larger states to pay for their services. Apple computing sits on $160 billion dollars of profits. Although it has a large corporate presence in California, all of its music downloads take place in Nevada with its small amount of taxes. Most of the credit card companies incorporate in the small states of South Dakota and Delaware to avoid financial regulation. How is that fair?
Land of the Free(bies), Home of the Slaves.
This is what happens when progressive Democrats with no real experience or common sense get to dictate policy. Sure, Texas and South Carolina were mentioned in the article, but it is the greedy left-wing blue states driving this.
The trick is to bankrupt the high tax states and put them entirely out of business, foreclosed.
States like New Jersey may well find that companies decide it is easier simply to stop doing business in their state altogether than to be subjected to this new Barbary pirate-like treatment.
There is a simple answer to this. When an employee is laid off, he should demand unemployment compensation from all states in which his employer is taxed. Then watch what happens.
And people wonder why so many hate government at all levels.
The thirst for money is driving some States to strange behavior. I moved from California to Colorado in 1993. In 2010 I received a bill from a collection agency in California trying to collect an underpayment of tax from 1986. I think this is just a case of the starving trying to survive.
Steven, thank you for a fabulous article. It makes me wonder what it will take to wake up Congress and protect businesses from this increasing insanity. Meanwhile, you mentioned that all but six states would consider nexus based on a telecommuter. Do you happen to know that those six states are? That would be great information to share with businesses. Thanks.
The politicians complain about "inequity" and how employees aren't receiving increased cash incomes. How do they think these compliance costs are paid? There is only one hundred cents in the dollar and if states take one or two cents, for tax compliance costs, then the money isn't available for employees, shareholders etc.
And if the federal and several state governments are successful in their push for a mileage tax to replace or supplement the nation's various fuel taxes, the situation will only get worse. Viz., GPS-equipped vehicles (commercial and personal) will be able to be tracked with time and place precision that will make all manner of other per-diem taxation schemes even more intrusive and onerous. Do not doubt that this is what they all have in mind as an ultimate objective.
Perhaps the only thing that could be more intrusive would be to mandate the implantation of GPS transponders in every citizen at birth.
Don't laugh. They're thinking of that too.
The State continues to drain the coffers of all business no matter where that business resides. When the subsidies cease from Big Brother these states will require more revenue and the vampires will be out in even greater numbers trying to drain those who work to pay for the uneducated and under skilled who live off the federal largess addiction.
Revolution is the only hope to save America from leftists who are bent on creating Hell on Earth.
This article is absolutely accurate. While a Canadian, I have experience in the US. I was shocked at the complexity of dealing with state tax issues and how aggressive they were in respect of collecting a whole range of taxes and fees even when the connection to the state was minimal. Basically each state had to be managed as if it were a seperate country - an out of state firm is referred to as a "foreign business".
Panarin would see this as yet another sign of disintegration. His timing was off, but the drift is generally taking place. Rome did not collapse in one day, either. Give it time, and it will happen.
If you think that the states are hurting now for new sources of revenue to fund the welfare and healthcare costs of their growing indigent and dependent populations, wait until 2020 (only six years away)when the 90% federal subsidy of states' Medicaid costs is scheduled to end, and millions of the low-income and no-income unskilled, underemployed and unemployed are receiving free lifetime medical and dental care courtesy of what will at that time be 100% state taxpayer funded Medicaid.
Administration flacks have already been boasting that 75% of the people who have successfully signed up for health insurance on the Obamacare exchanges are eligible for premium free Medicaid. Any idea of what THAT is going to be costing the taxpayers of each state - particularly the states cited in this article? And states that are presently receiving a federal subsidy to cover their Medicaid costs are being required to automatically grant Medicaid eligibility to released felons, to cover unlimited trips to drug rehab for drug addicts, and even to cover sex change operations.
A couple of generations ago there was a cartoonist, Al Cap, whose comic strip, Li'l Abner, contained a character, Senator Bullmoose, who wanted to pass a law requiring everyone to wear a meter on his or her back that would measure the amount of air they breathed, so the air could be taxed. What was funny fifty years ago might well be true, and not all that far away.
And the NYS Ads by the Cuomo administration are touting the business friendly state..... 'come to NY and pay no taxes for 10 years." Nonsense, this state is unfriendly to anyone who wants to hang on to their own money. Returning to my home state, NY was a huge mistake.
The castles of robber barons are best avoided.
Dark Ages wisdom for the new Dark Age.