State sales tax audits
 

Just got a letter in the mail from the state dept of revenue auditing my purchase of a boat a couple years back. They're requesting an invoice from the purchase and a canceled check copy.

Lets just say that the check amount may not match the invoice amount. Anyone run into this situation before? Probably the best thing to do is to pay the tax difference plus penalty.

Chances are they audited the purchase and contacted the seller first, when their info did not match up they came LOOKING for you! happened to me with a truck I sold to someone and they wanted me to give them the sale information... I failed to respond and heard nothing.

How long is a couple of years.......exactly? If its just a difference and not an entire fail to pay tax, then the statute of limitations may be in your favor.

Most states mirror the federal:

Generally speaking the statute of limitations would be 3 years after you paid the tax. If its because of fraud..........its 6 years.

I bought the boat in March of 2005 and sold it in May 2007. Paid tax on it in the end of march of 2005.

If the letter wasn't sent certified I'd disregard it.

Never ignore the government when they are looking for money. Address this in a professional manor.

If the check is for more than you filed with the state say you purchased an additional motor, props, mooring cover etc. you are not obligated to pay tax on anything else. In fact, when you purchase a boat you should pay for the hull seperately. A boat is a boat even without the engines, drives interior, etc.

Hopefully they are reading this site.

Illinois must be reviewing all boat sales from 2005. I got an identical letter. Isn't this about the time they started collecting sales tax on used boats? I don't recall paying sales tax on used water craft before that time period in Illinois. I mailed them copies of everything.

Thats how I do it. Several bill of sales.