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 Megan C Your Own Question

Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 13213
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

I have a business doing tours in Arizona. I have never charged

Resolved Question:

I have a business doing tours in Arizona. I have never charged tax because we provide a service, not a product. I've been told that I must charge tax. Do I need to charge tax on my tours? If so, am I liable to pay back taxes?
Submitted: 10 months ago.
Category: Tax
Expert:  Megan C replied 10 months ago.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

I hate to be the bearer of bad news, but you should be charging a Transaction Privilege Tax, which is also referred to as "sales tax" on the tours

Megan C :

The tax is not a true sales tax, but a tax that is imposed for the privilege of having a transaction in the state.

Megan C :

There are several exemptions to who is liable for this tax, but based on the information that I have in your question you would not qualify for one of the exemptions.

Megan C :

A flyer detailing this tax can be found, HERE

Megan C :

It is also possible that Arizona will want back taxes for tours that you did not pay the privilege tax on.

Megan C :

I can't guarantee that they will ask for back income, but it is a possibility.

Megan C :

I would start to charge this tax on your tours now, so that your customers are carrying the cost of the tax.

Megan C :

If it's been a significant amount of time that you have been in business and not remitting taxes, I would strongly suggest seeking the assistance of an Arizona CPA to assist you in filing your returns and navigating any back tax issue.

Megan C :

I wish I had better news for you - please don't shoot the messenger!

Customer:

Hi Megan,

Megan C :

Hello

Customer:

I kinda figured your answer was going to be what you said. I have no problem starting to charge a sales tax to my customers, but the idea of seven years (that's how long I've had the business...The business is actually over 12 years old. The previous owners never charged a tax) of back taxes puts me in an impossible situation. Should I consult an attorney to see if I can forestall or entirely avoid back taxes and penalties?

Megan C :

You don't need an attorney, you could get a CPA (may be cheaper). But, you will need a professional to tell you how to handle this delicate situation.

Megan C :

It's possible that perhaps you could get some of your penalties abated.

Megan C :

I'm truly sorry you're in this situation. Please let me know if you have further questions about this matter. If not, please rate as "excellent" so that I may receive credit for assisting you today

Customer:

Hi again Megan,

Megan C :

Hello

Customer:

Your prompt and heartfelt answer were much appreciated. Thank you for tyour professionalism and expert help. You certainly will get an excellent rating.

Customer:

Thanks again,

Customer:

Ed

Megan C :

You're welcome. Be sure you let me know how I can help you further.

Megan C :

Thanks, Ed. Best of luck!

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 13213
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 4 other Tax Specialists are ready to help you
Expert:  Megan C replied 10 months ago.
Thanks, Ed for your positive rating. Although I didn't have better news for you, I am glad I was able to assist you today. If you need anything else, please come back and ask for me directly. It was a pleasure working with you.

In a couple days you may receive a short survey - your positive feedback on that survey would be appreciated, as it will help me with rankings on the site. Thanks again for being a valued JustAnswer.com customer.

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.