Sellers Permitt is getting me in trouble with Uncle Sam!

  • avatar

    by: babydoll85
    SaleHoo Senior Member
    71 posts

    Sellers Permitt is getting me in trouble with Uncle Sam!

    Posted 9 Dec 11 5:52 am.

    Ok so I got a sellers permitt because evertime I went on a wholesale website it says they require a sellers permitt to order, so I went ahead and got oone! I thought it was just like a permitt I need to purchase and pay a one time fee of $39 and thats it. This morning I got a letter from the Minnesota Revenue say that "We are demanding that you file the following return: Period ending: Oct. 31, 2011 Due: November 21, 2011. I dont know what I have done please help me I do not want to get in trouble with the IRS I swear I dont even know one thing bout taxes I just thought I get a sellers permitt and thats it, and I havent even ordered anything from any of the websites that require a sellers permit since I got one! I dont know what I am supposed to file I havent done anything and I am clueless and freaking out because I do not want to get in trouble with the law! Please tell me what I need to do I dont know what I have done and by the way on the letter it said way on the bottom.."If you wish to cancel your sales and use tax account, you can close your business from the e-services menu on our website link hidden and so I went on their and requested that they close my account and as of right now it says that my request is pending. Please let me know what I should do to get out of this mess, thanks.
  • avatar

    by: fm1234
    SaleHoo Master Member
    596 posts

    Re: Sellers Permitt is getting me in trouble with Uncle Sam!

    Posted 9 Dec 11 6:10 pm.

    You're not in any trouble. In states that levy sales tax, a resale certificate (or whatever it's called in MN) comes with the responsibility to collect and remit sales taxes on applicable sales (generally, any sale made to a Minnesota resident or shipped to a Minnesota address.) You have to file periodic reports with the state, which is what it sounds like they're asking you to do here. If your activity has been zero, then file it as zero; however, I would recommend talking with the revenue people about whether or not there are exemptions for businesses under a certain size, or who only sell online and therefore are likely to have a fairly low percentage of in-state sales etc. (some states have exemptions and some don't.)

    If you're going to run a business, especially in the US, you have to get used to paperwork. It's just an unfortunate, annoying fact of life. And without wishing to convey any kind of ill impression, the requirements and responsibilities that come with a seller permit should have been right there on the form or web page you filled out, or at least referenced where you could find them, and this would have included the reporting requirements -- so perhaps you overlooked them.

    In any event, you're not in any trouble at all -- they're just asking for you to report on whether or not you had applicable sales activity for this quarter, and to pay any sales taxes due if you did.

    Frank

    "Failure is not when you fall down. Failure is when you don't get back up."

    --J.J. Luna

  • avatar

    by: babydoll85
    SaleHoo Senior Member
    71 posts

    Re: Sellers Permitt is getting me in trouble with Uncle Sam!

    Posted 9 Dec 11 8:43 pm.


    Thank you!

    I called them today and they said its ok and that they will just report that the account was made in error and to just ignore everything! Yaay I feel so relieved cause uncle sam sure doesn't play around :)