Have a Tax Question? Ask a Tax Expert
Hi, my name is Mark. I will be happy to help you with your questions. What state do you live in? Approximately how much in sales did you have?
I would assume that you received a lot of your payments from Paypal. Are you able to download any information from Ebay or Paypal?
That is fine. Chat messages are more than acceptable. The solicitation for a phone call is from the website and not me.
You should have collected sales tax on your sales to customers within New York.
What year is the state auditing?
For your sales tax audit your purchase price is not a problem. I am trying to see if there is any way to get the historical information from Paypal. Please give me a few moments.
If you go to Paypal and select the reports tab at the top of the page. The next page will give you the option to select activity download. Once you select the activity download there is the following disclaimer near the top of the page: "The following changes are now available in the activity download experience: The "shopping cart details" will now show as a single row by default; "quantity" field has been added. Can't find something else? You can still use the older version of the activity download tool by switching back."
If you select the switching back option it will take you to another page where you can download the information from prior years.
I just tried it on the Paypal site.
Do you see the activity tab at the top of the page when you log into your account in Paypal?
There should be an activity download tab that gives you the option to switch back to the old format. This will give you the option to change the time period of the report.
I understand that you would need to open each transaction. I was hoping that paypal would produce a historical report with this information. I tried to download a report for 2010 to see what kind of information would be on it. I am still waiting for the report to be produced.
I know it will be a hassle but you are going to need to show the state where the product was shipping. I would assume that a large portion of your items were shipped to customers outside of New York. These items would not be subject to sales tax. Without providing documentation the state will assume that all of the sales were to New York residents.
I know that it is not right. That is why that you need to show the state where your sales are being generated. There is no sales tax on items shipped outside of New York.
I am sure that the auditor is familiar with Ebay. It is possible if you can shows that only a small percentage of sales occur in Ebay during the period that you have access to information, then this percentage could be applied to past years. I am sure that you are not the first person that is in this situation.
The auditor is likely going to require that you document the sales activity for the information that you have. So you may need to create a spreadsheet of your sales and where they were sent. If you have 60 sales a month you are looking at a long project.