How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask FiveStarLaw Your Own Question

FiveStarLaw
FiveStarLaw, Tax Attorney
Category: Tax
Satisfied Customers: 36457
Experience:  25 years of experience helping people like you.
Type Your Tax Question Here...
FiveStarLaw is online now
A new question is answered every 9 seconds

I am a golf professional in illinois and have a contract with

Resolved Question:

I am a golf professional in illinois and have a contract with a golf course to operate the course and to own and operate the pro shop retail sales, which I have a registered Retailers Certificate Number with the state of Illinois. I am payed a salary, recieving a W2, and receive a 1099 form for the sales in the pro shop that I own and purchase all of the merchandise for. I currently pay the sales tax for the merchandise sales, but my GM and board pres are worried about the clubs liablities for the sales tax. They want to see my sales tax reports for the past 3 years. Do they have to worry about their liabilies with my sales tax and can they force me to show them my books?
Submitted: 3 years ago.
Category: Tax
Expert:  FiveStarLaw replied 3 years ago.
Welcome!

I am an attorney with 25+ years of legal experience and am working diligently on your answer while I await your response.

Please tell me:
Since you are the owner of the golf shop, who is giving you the 1099?
Does your contract state that you will provide the club with copies of the sales tax reports?


Thanks!
Customer: replied 3 years ago.
The golf course owners association, because the pro shop collects the moneys for both Greens Fees, Carts and my pro shop sales including the sales tax on my merchadise which is included in the 1099. My contract does not state that I provide copies of the sales tax reports.
Expert:  FiveStarLaw replied 3 years ago.
You do not need to provide copies of the sales tax reports since your contract does not require that you do so. However that said, the Golf Course Owners Association could be held liable for unpaid sales tax since their entity is collecting the sales tax and delivering it to you for reporting and payment
Customer: replied 3 years ago.
Could I have them pay the sales tax and eliminate all of their worries and how would that work if I have a separate sales tax certification number from theirs. Does it matter that the pro shop sales are under my business name.
Expert:  FiveStarLaw replied 3 years ago.
Yes you could have them pay the sales tax under their own sales tax certification number. You would then close your sales tax certification number. It is confusing that the partnership sales are under your name - you could change this to be under the club's name
Customer: replied 3 years ago.
The expense and sales for pro shop merchandise are not a partnership, they are my own exclusively. The Greens Fees and Cart Fees are theirs. We just do one deposit because we share the credit card machine.
Expert:  FiveStarLaw replied 3 years ago.
Consider not sharing the credit card machine and separating the 2 businesses. The IRS may consider your activities to indicate a partnership even though neither of you intended to form a partnership
Customer: replied 3 years ago.
So the problem is the 1099 that they issue to me makes them possibly liable?
Expert:  FiveStarLaw replied 3 years ago.
yes that is correct
Customer: replied 3 years ago.
Can they pay me my portion of the deposit including the sales tax and not give me a 1099?
Expert:  FiveStarLaw replied 3 years ago.
It is not wrong to do that however from a legal standpoint you are opening yourself up to a claim that you are partners.
Customer: replied 3 years ago.
Does it change anything that I lease the area for the pro shop from them?
Expert:  FiveStarLaw replied 3 years ago.
no it does not change my answer as I understood that to be true initially --

I believe that I have answered your original question -- "Do they have to worry about their liabilies with my sales tax and can they force me to show them my books? "

My answer was -- "You do not need to provide copies of the sales tax reports since your contract does not require that you do so. However that said, the Golf Course Owners Association could be held liable for unpaid sales tax since their entity is collecting the sales tax and delivering it to you for reporting and payment"


J.A. policy requires that you start a new thread for a new question. Please accept the answer and then you may start your new question in a new thread
FiveStarLaw, Tax Attorney
Category: Tax
Satisfied Customers: 36457
Experience: 25 years of experience helping people like you.
FiveStarLaw and 5 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.