Use Tax Voluntary Compliance Letter

**ehidle** · November 20th, 2009, 05:35 PM

Today I received a very interesting letter from PA DoR regarding Use Tax liability for my business. Although I pay my taxes, they apparently think I don't, and want me to audit my books for the last 3 years and determine my liability, and, of course, cut them a check.

I buy 99% of things I use in my business from local establishments like Staples or whatever. When I do buy something from Amazon or Newegg that I actually end up using, I make the Use Tax payment via e-Tides when I file my quarterly tax returns.

Has anyone else ever gotten one of these things, and if so, how did you deal with it? The letter they sent sounded an awful lot like "We think you owe us money. Send us some or we're going to make your life a living hell. We're not going to tell you how much we want, so you just have to guess and hope it's enough. Better make it a big number"

**Pa. Patriot** · November 20th, 2009, 06:18 PM

I received one last year.
Did the audit, paid the tax owed.

**LittleRedToyota** · November 20th, 2009, 06:42 PM

i got one for my independent contractor "business" for which i have never bought anything...in state or out of state. (it's computer programming using computers, etc. owned by the client. all the capital--which ain't much to begin with--that goes into it is bought by and owned by the client.)

given that the "business" has never purchased anything and owns no assets, i obviously do not owe use taxes.

so, i just ignored my letter (which i got over a year ago). i have yet to hear anything else about it.

if i do, i'm not sure what i will do other than try to explain to them that i have never purchased anything for the business or anything that is used in the business, so...where does that leave us? i obviously cannot prove that i never bought anything for the business as it is impossible to prove a negative.