Taxes

[mr ed]

The reason they are going to make the ffl dealers comply is simple. There are certain dealers in this state who are selling hundreds or thousands of guns per year, collecting and pocketing the tax and then telling the OTC that they only "received" the gun.
This has been in the works for several years.
As money is tight also expect a clampdown on Gunshows, fleamarkets and any other cash venues.

They will come in, audit your bound book and level tax against msrp if you don't have receipts/invoices.

 

[Honeybee]

The talk about taxes at the FFL confrence was not expected (or liked) and not innitiated by the speakers. it was a sidebar by a gun dealer who already requires a sales recept with any incomming transfer and he will hold a gun until he gets it. (an FFL is not required to turn over transfers until he wants to, there is no time limit.)
Then charges local sales tax on the sale price just like they do in a few other states.
He was told that the OTC will require this in the near future but he is doing it now and the OTC told him to keep it up. (can they do that?)
As the law reads now the consumer is the one responsible for paying the tax when he/she files their tax returns.

I wonder how he gets any business? I guess he has his customers buffalowed into believing he can do this now.

 

[Honeybee]

Did you know that we are not suposed to do transfers to people who are buying guns that they are going to sell at a gun show?

True!!

"I further understand that the repetative purchase of firearms for the purpose of resale for livelyhood and profit without a federal firearms license is a violation of law"

It is printed directly over the signature line on the 4473!

as they explained it if we regularly do transfers to people that we know are going to resell them then we are abetting a crime and can loose our licenses.

 

[Glocktogo]

Coupled with mr ed's comment above, care to name the dealer who's doing this? When the FFL holder is merely providing a tax exempt service, I fail to see the OTC's legal grounds for holding the dealer responsible for collecting the tax. I could understand if they wanted to audit the transfers and then go after the purchaser, who IS responsible for paying under the Use Tax law. I'm assuming they're going after the dealer as a cheaper alternative to tracking down all the individual buyers, but that's not how the law currently reads.

I can foresee a legal battle over this underhanded tactic by the OTC.

 

[Honeybee]

Coupled with mr ed's comment above, care to name the dealer who's doing this? When the FFL holder is merely providing a tax exempt service, I fail to see the OTC's legal grounds for holding the dealer responsible for collecting the tax. I could understand if they wanted to audit the transfers and then go after the purchaser, who IS responsible for paying under the Use Tax law. I'm assuming they're going after the dealer as a cheaper alternative to tracking down all the individual buyers, but that's not how the law currently reads.

I can foresee a legal battle over this underhanded tactic by the OTC.

I do not know who this dealer is, The room was full and I only knew a few of the people there.
I know it is not law now just bringing up that it has happened in other states and can happen here. and it sounds like they are thinking hard about it.

 

[Fatboy Joe]

There has been some new legislation passed in the last several years dealing with online retail sales. I believe the state is trying to require any business who sell merchandise to an Oklahoma resident over the internet to report the sales to the State of Oklahoma. This would then allow the state to track who is purchasing these items and if they included those purchases on their tax return. I have several clients mention they received 1098 type forms that reported their internet purchases.

 

[jwv]

Coupled with mr ed's comment above, care to name the dealer who's doing this? When the FFL holder is merely providing a tax exempt service, I fail to see the OTC's legal grounds for holding the dealer responsible for collecting the tax. I could understand if they wanted to audit the transfers and then go after the purchaser, who IS responsible for paying under the Use Tax law. I'm assuming they're going after the dealer as a cheaper alternative to tracking down all the individual buyers, but that's not how the law currently reads.

I can foresee a legal battle over this underhanded tactic by the OTC.

Well when it comes to taxes the OTC will not leave any stone unturned, they know if they can get it the tax at the time of purchase or transfer they won't care about the individual. The OTC is doing everything they can to get in our pockets and online sales is their newest cash cow, they just are learning how to milk it for the most they can.

 

[Fatboy Joe]

I agree jwv, most states are trying to get every dime they can.

 

[Glocktogo]

I don't begrudge them the dime, but the way they're going about it. If you have to pay internet sales tax, and shipping, and the local dealer doesn't get a percentage of the sale, and the local .gov doesn't get their cut, it seems the only one getting a good deal here is the state. Seems to me it would be better to have the true seller collect sales tax on their local rate. That would ensure their revenue, ensure the revenues of the local and state coffers, and eliminate the burden of proof from the buyer and the middleman.

 

[TheMcs]

There's a line on your tax return to fill in the dollar amount of online purchases made on which you weren't charged taxes. Most people scoff and write $0. I was informed this year by my tax acct that the IRS tried to make major online stores collect taxes, which they refused to do. In turn, they are supplying the IRS with records of who bought how much. If there's enough of a discrepancy, you could wind up with a lovely audit. Sucks, but only because we bought online so long without paying taxes, but I don't hold a grudge for paying what's due. Truly hope this causes a trend for more patronization of brick & mortar, local stores.

I have no insite into how this would relate to a FFL dealer, just my experience withone of the topics broached.