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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2365
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I recently received a tax use form from the State Revenue

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I recently received a tax use form from the State Revenue Service requesting the amount of money I have spent on the internet from 2006-2011. They want money based on the three highest years of that time period.
I have two choices, itemize or pay a predetermined amount based on my adjusted gross income.
Do they have the ability or right to search my credit card use, and do they have the right to ask vendors for this information?
Welcome, THANK YOU for using Just Answer. My goal is to help make your life...a little...LESS taxing.

In the state of Maine, purchases over the internet are treated the same way as purchases made out-of-state. If the vendor is not registered with Maine and does not charge Maine sales tax, then you would be liable for the use tax.

REFERENCE SOURCE:

http://www.maine.gov/revenue/salesuse/use%20tax.htm#internet

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As it is a state tax law, I would say that yes, they can request this information from vendors, whether they can, or will search your card use is unclear.

Please let me know if I can be of further assistance to you regarding this matter.

Thank you again for using JUST ANSWER.
Hello again,

As you do not seem to be pleased with my answer, I will release the question back into the question queue so that someone can assist you.

Thank you again for using JUST ANSWER.
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Customer: replied 4 years ago.

The second part of my question was not if they will, but, if they can search my credit card use.

Hi

Thank you for your question. Starting with this past tax year, 2011, the IRS generated a new form, Form 1099-K for companies that process credit and debit cards as well as third party network payments such as Pay Pal, Amazon.com and Google and required them to report to merchants and the the IRS the gross amount of the transactions they've processed, unless the business had fewer than 200 payments totaling less than $20,000.

What this means in answer to your question is, no, they cannot search your cc use HOWEVER, they can (and are) making the 3rd party merchants accountable for making individuals pay sales and /or use tax. If you were a large user of any of these third party network payments, then this is what generated the letter.

Generally, the pre-determined $ amount based on your AGI is more advantageous, however, if you have accurate records that would prove otherwise, then use which ever results in a lower tax.

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.


Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2365
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Anne and 2 other Tax Specialists are ready to help you
Customer: replied 4 years ago.


Great answer, Thank- You.

You're welcome.

Thank you for using justanswer/Pearl

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