U.S. States Are Creating Laws That Snag Taxpayers Everywhere

New state tax laws are making more and more taxpayers tax cheats without them realizing it is happening. Think it can’t happen to you? Here are some examples:

  • Your small business registers for a sales tax in Texas and you receive a letter from some obscure Texas town that says you need to send them a registration fee. Where did this come from?
  • A Florida widower with income marries a retired woman who lived in Utah for nine months. The woman has no income. He has never been to Utah, even to visit. Per Utah tax law he must now pay income tax to Utah on his Florida income if he files a joint tax return.
  • A Delaware resident owes Minnesota income tax for consulting work even though she never steps foot in Minnesota.  This is because the company who the Delaware resident did work for has a physical presence in Minnesota. The same situation is true in California and other states.
  • You decide to retire in Nevada to enjoy the sunshine. You then receive an audit letter from New York that says you need to pay them income tax, even though you no longer live there. They demand credit card statements, your drivers license and more. You provide the information, yet their demands do not go away.

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