Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

US taxation issue I have been doing business in CA with a…

Hi,US taxation issue I have been...
Hi,US taxation issue
I have been doing business in CA with a foreign partner to sell some stuff in ebay. My partner have an ebay account, and a paypal account. When he gets an order, he informs me of the order, and I ship the items to the buyer.When we started the business, I asked about us taxation issues here to set up sales tax in CA, because my entity is in CA, and one CPA here recommends my partner to collect CA sales tax. So he did it.Recently paypal is asking if my partner is not us person or entity and is not subject to US taxation, or a US person or entity and subject to US taxation.I thinks the partner should check "not us person or entity and is not subject to US taxation."
We have collect some sales tax, so should we return the buyers later? What does it affect our business? We don't need to collect them any more? I don't need to report the sales within CA?Please let me know.
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 hours by:
10/19/2017
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,073
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Verified

Welcome to Just Answer! Thank you for giving me the opportunity to assist you! I will do my best to help!

Ask Your Own Tax Question

Ebay is not referring to sales tax. They are asking if your partner is subject to income tax, or US withholding tax. Many times a foreign person is required to have up to 30% withholding tax on income that is connected to a US trade or business.

Additionally, do you have a partnership agreement with this foreign individual? If he is truly your partner, you should be filing a Form 1065 partnership tax return to report the income that you jointly earn, and he would pay tax on his share. Also, if you do have a partnership, and he is a foreign partner, you must file a Form 8804, even if there is a loss or no income for him to report. You also need to file a Form 8805 and 8813.

I hope this answers your question. If you have any more, please feel free to ask and I will be happy to answer.

Thanks! Have a great week!

Roger

taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,073
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Verified
taxmanrog and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 7 months ago
Hi,I attached photos from paypal, questioning us taxation for reference.
My partner is not a business entity, but an individual, helping me sell some stuffs, and getting extra money. We don't have a partnership agreement. After finishing sales, we divide the transaction. When the sales occurs within CA, he sets up his paypal account to collect sales tax, and I am going to pay the sales tax next year.
For example, when we make sales of $100 within CA, we collect $108 with the tax, and the partner transfers $75+$8 to me to let me pay the sales tax next year. The partner gets $25, and he will report it to his country.
I hope you would understand our business more.
Was this answer helpful?
Ask taxmanrog Your Own Question
taxmanrog
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,073
1,073 Satisfied Customers
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.

taxmanrog is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Individual on an o-1 visa with no US income or presence in a
individual on an o-1 visa with no US income or presence in a year, do they need to file a return?… read more
abci168
abci168
Principal
27 satisfied customers
I am looking at form 3520 and a foreign individual gave me a
Hi, I am looking at form 3520 and a foreign individual gave me a gift, … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
If I'm filing an extension on my tax individual tax return
If I'm filing an extension on my tax individual tax return and don't know my tax liability, payments, balance due, or amount I'm paying for 2017 on the "Part II Individual Income Tax" section - what s… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Wanted to know about foreign tax. I filed tax return in
I filed tax return in India do I need to show India income in fbar form only or do I need to pay tax of foreign income … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Filing a NR Canadian income on a US Federal 1040. Which form
Filing a NR Canadian income on a US Federal 1040. Which form is used to report this foreign income? only Box 16 reports income with numeral code 46 in box 14 and in box 15 is CAD. … read more
Mike-USACPA
Mike-USACPA
9 satisfied customers
Should US company withhold income tax to US budget if
Should US company withhold income tax to US budget if employee (person who is in payroll) is non-resident?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
If I file an incorrect return type (i.e., partnership
Hi Barbara,If I file an incorrect return type (i.e., partnership instead of S Corp), and I want to file the S Corp return instead, what would I do for NY and Federal? Thanks.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Should US company withhold income tax when paying to
Should US company withhold income tax when paying to Individual person (who is not employee, not in payroll) if : the person is non resident of US and is not located in US AND the person renders softw… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
K-1 schedule foreign transactions - blocks ,C, D, and E have
k-1 schedule foreign transactions - blocks B,C, D, and E have small numbers (578,138,176, and 8 resp). Report this on form 1116 or schedule E? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
When filing a final partnership tax return does it matter if
When filing a final partnership tax return does it matter if the ending equity balance of each individual partner is not zero? Basically they total 0 when combined but some partners are positive and o… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Section 962 election A US individual owns a foreign
Section 962 election A US individual owns a foreign corporation which generates GILTI income. Can the US individual make a section 962 election (to be taxed at corporate rates) and therefore pay only … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Tax Experts - Foreign partner US LLC partnership had one
Tax Experts - Foreign partnerUS LLC partnership had one foreign partner (42.50%) from Italy. In order to get k-1 and pay taxes, foreign partner applied for federal ID which was used by US LLC to repor… read more
taxmanrog
taxmanrog
Certified Public Accountant (CPA)
1,073 satisfied customers
Where do report for Partnership (LLC) returns using Form
Where do report for Partnership (LLC) returns using Form 1065 income recipient from taxable federal grant? Specifically, 1099-G, Box 6.… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
This is in regards to a partnership tax return Form 1065 and
This is in regards ***** ***** partnership tax return Form 1065 and potentially amending it. The only reason for the amendment would be the distribution information on the K-1s was incorrect. Nothing … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Does a US domestic partnership that has foreign partners and
does a US domestic partnership that has foreign partners and sustained a loss in 2017 have to file any IRS forms on behalf of the foreign partners. I know the partnership has to file Form 1065 but are… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Penalty for late filing of partnership LLC tax return, not
Penalty for late filing of partnership LLC tax return, not eligible for Rev Proc 84-35 relief because one of the partners is a foriegner… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
A foreign individual is a member of a US LLC. Are there any
A foreign individual is a member of a US LLC. Are there any extra requirements for filing when it comes to the partnership return?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
US taxation and sales tax issueI started ebay business with
Second opinion] US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, an… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x