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NEW Sales Tax Laws take affect. January 1st

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monidaw1
Thursday, October 04, 2018 12:20:52 PM
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CCL appears to be unaware of them.

Quote:
As you may know, the Supreme Court ruled in favor of South Dakota in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on these retailers.

Some states have extended the tax collection obligation to marketplaces. We believe this ruling is unfair to small businesses and will continue to call for greater simplicity. In the meantime, we’re working to find the best way to support our sellers.

What this means for eBay sellers: Regardless of where you’re physically located, if you sell to buyers in certain states, those states may require you to collect applicable taxes on your transactions.

Therefore, based on these new laws, we will calculate, collect, and remit sales tax for orders shipped to customers in the following states on the following schedule:

Washington—starting Jan 1, 2019
Pennsylvania— starting July 1, 2019
Oklahoma—starting July 1, 2019

Once we start collecting tax in these states, you do not need to take any action. There are no extra charges or fees for this service. Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose.

There are no opt-outs for selling items into the states listed above, or out of eBay automatically collecting sales tax for items shipped to the states above.

Additional states will likely be added to the above list. Stay informed on the Help pages.


Will CCL be collecting Sales Tax for those States or do we have to start declining sales to those states or is there another option?

Another issue I've mentioned in the past.

When an order or message comes in, a box pops up on the bottom right hand corner.

We click it and it takes us directly to the order details page.

Nowhere on the Order Details is their any breakdown to show if taxes or additional fee's were paid. To find that out we have to actually click back out to the main page that lists all the orders.

It makes it easy to miss if someone did or didn't pay extra and now it's appearing to be on the way to becoming a daily need.

1. I would prefer CCL automatically apply Sales Tax to orders for States it's required for instead of hoping customers will voluntarily. It costs an extra 30 or more cent base charge at PayPal to have to invoice seperatly after the fact while delaying shipping.

2. I wouldn't mind seeing CCL collect it as part of the Seller Fee's to distibute to the States directly as long as you fix the checkout to automatically apply it to the sales total.

3. I'm assuming you're going to continue charging 5% of what we're forced to collect in Sales Tax and shipping charges as sales commissions.


Just for clarification purposes, is the Sales Tax going to be required to be charged based on the State in the Shipping address or the State the member set up their PayPal as home residence?

Any word on how long it's going to take before States start wanting Sales Tax on OUTGOING sales as well as INCOMING resulting in DOUBLE TAXATION? They already do something like that with outgoing and incoming tariffs between countries which should start to show up in more noticable price increases for Action figures and such coming out of China based on Trumps last round of increases having nowhere else to be applied to.. I'm starting to think everything not in print Diamond supplies comes from there. They even have a permanent link called "Toys On The Water" so we know what's dodging hurricanes and typhoons.

There's a discussion on Database Brand A at least providing snipets of what's less than 90 days away. Apparently as few as 200 transactions forces you to have to collect and pay which that's not a lot for some of the bigger traffic states like PA, NY, CA, TX, NC and OK. Here's what another sites staff seems to think.
Quote:
Posted - 09/27/2018 : 11:11:51

The short answer is, we're going to have to see how this all shakes out. Nobody can know what the ultimate effect of all this is--but the idea of small sellers having to deal with the approximately 10,000 sales tax jurisdictions in the country is absolutely insane. At its worst, it has the possibility of being an extinction-level-event for small businesses who sell online, not to put too fine a point on it. This is a solution which absolutely demands some sort of sensible rulemaking--fast.


All this an we can't even get a We're aware of the situtation and considering options reply here.

Do the E-Bay sales for each State count towards the 200 each stores limited to staying under even though they're collecting and filing for those. Is it 200 plus whatever E-bay handles or does 80 Sales from a State on CCL along with 15 direct sales put us over if E-Bay had 112?



Additional questions, here in VA the Sales Tax is usually a State amount like 4.5% and another 1% added for Local Sales Tax. How are we to know in other States wether to charge the base amount for the State itself or an extra amount for the area inside the State the buyer is from? Here in VA I just charge a flat 5.5% just like I do with walk-ins.

Can CCL provide an official and regularly updated list of which States are going to require Sales Tax on INCOMING shipments and when they begin so we can at least start declining sales from those States while we wait for a better option here? An official version here would be much better than hoping to find out the info at other market places.
padreglcc
Thursday, October 04, 2018 3:12:52 PM
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Have you directly contacted Joe or Steve regarding this? (By "directly" I mean, by phone or email, not through PM or forum post.)
“One of the most sincere forms of respect is actually listening to what another has to say.” ~ Bryant H. McGill

Please make sure you read and understand the Forum Rules here.

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KnifeTricks
Monday, October 08, 2018 9:52:50 AM
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Monidaw, your suggestions have been noted. We will monitor the incoming tax changes and see if there's anything that needs to be done on our end.





Chance Butler
Graphics

e-mail us at helpdesk@comiccollectorlive.com
monidaw1
Saturday, October 20, 2018 4:54:01 PM
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Iowa, Connecticut, Massachusetts, Ohio, and Rhode Island, have adopted similar laws.
https://www.avalara.com/us/en/blog/2018/06/iowa-to-tax-remotesalesservicesanddigitalgoodsstartingjanuary201.html


Quote:
Also, as of January 1, a retailer is considered to be doing business in Iowa and subject to the sales and use tax laws if in the current or immediately preceding calendar year that retailer:
Has gross revenue from Iowa sales equal to or exceeding $100,000; or
Makes Iowa sales in 200 or more separate transactions.



Quote:
The department may also impose penalties on sellers that fail to comply with the notice and reporting requirements, provided the penalty can be waived upon a showing of reasonable cause for the failure. The penalty for failure to provide the necessary notification to a purchaser may not exceed $5 per failure; the penalty for failure to provide a periodic report of purchases to the purchaser may not exceed $10 per failure; and the penalty for failure to provide the department with an annual report may not exceed $10 "multiplied by the number of purchasers for whom informaiton should have been but was not included in the annual report."



Quote:
Tax on specified digital goods and services
The following digital goods and services will be subject to sales and use tax as of January 1, 2019:
Digital audio works (e.g., music, ringtones)
Digital audiovisual works
Digital books
“Other digital products”
Information services
Software as a Service
Services related to enhancing, installing, maintaining, operating, repairing, servicing, or upgrading specified digital products
The storage of tangible or electronic documents, files, or records


I'm not computer literate but isn't CCL providing Software to these states "as a Service"?


Quote:
Tax on services
The following services will also be taxed as of January 1:
Pay television, including but not limited to streaming video, on-demand video, and pay-per-view
Personal transportation services, including but not limited to driver services, ride-share services, rides for hire, and taxis
Photography and retouching services
Subscription services


I'm assuming that's generic enough to include comic book subscriptions and daterbase software yearly subscriptions.

How many States is that now? I'm sure it's going to be more than just 8 I've stumbled across so far.

Quote:
Have you directly contacted Joe or Steve regarding this? (By "directly" I mean, by phone or email, not through PM or forum post.)


I have no desire to have private discussions about topics that potentially affect every single seller, buyer and subscriber. I'm assuming they would agree since they created this option for communicating with them openly and publically, intentionally. I've just never understood how it can be left unchecked for days or weeks at a time. I feel like all these cell phone games are ruining customer service and response times.
monidaw1
Friday, December 14, 2018 9:46:00 AM
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West Virginia joins the herd January 1st

https://www.avalara.com/us/en/blog/2018/10/west-virginia-to-tax-remote-sales-starting-january-1-2019.html


Quote:
Seven states already are imposing the new rules on out-of-state online and catalog sellers and ten will start on Oct 1. Two others will require collections or reporting later this year, and four more will do so starting Jan 1, 2019. States not only are beginning to collect the tax, they even are deciding how to spend the money—mostly by reducing sales or other tax rates.

The backstory
The biggest remaining uncertainty is what several of the largest states will do. California, New York, Texas, Maryland, Florida and Ohio have yet to act but are likely to do so once their legislatures return in January.


That's from a Forbes article.
monidaw1
Friday, December 14, 2018 9:54:13 AM
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Quote:
Starting January 1, 2019, Minnesota will be joining the list of states where eBay will be collecting sales tax on applicable transactions.

We’re committed to supporting any sellers who have been affected by the June 2018 Supreme Court decision, which changed the rules around how Internet Sales Tax is administered.

What the ruling means for you: Regardless of your physical location, if you sell to buyers in certain states, those states may require you to collect applicable taxes on transactions.

Some states have extended the tax collection obligation to marketplaces. We believe this ruling is unfair to small businesses and will continue to find the best way to support and advocate for our sellers.

Based on these new laws, we will calculate, collect, and remit sales tax for applicable orders shipped to customers in the following states:
Washington—starting January 1, 2019
Minnesota—starting January 1, 2019
Pennsylvania— starting July 1, 2019
Oklahoma—starting July 1, 2019


https://community.ebay.com/t5/Announcements/UPDATE-Ongoing-Changes-in-How-Internet-Sales-Tax-May-Impact-Your/ba-p/29124500

monidaw1
Friday, December 14, 2018 10:02:14 AM
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Quote:
New taxes on e-commerce sales went into effect Monday in 10 states, making online shopping a little more costly for many consumers.
A Supreme Court ruling in June gave states the green light to impose sales taxes on e-commerce companies, even if they don’t have stores or warehouses within the state’s borders. The case, South Dakota vs. Wayfair, made it likely that consumers would pay more for online purchases from out-of-state retailers.
Several states, including Hawaii, Tennessee and Vermont, began collecting online sales taxes in July, according to the Tax Foundation . Mississippi’s taxes took effect in September.

On Oct. 1, online sales taxes arrived in 10 more states: Alabama, Illinois, Indiana, Kentucky, Michigan, Minnesota, New Jersey, North Dakota, Washington and Wisconsin.


Colorado announced last month that it will begin requiring e-commerce businesses to collect sales taxes on Nov. 1, joining North Carolina. Connecticut’s online sales taxes begin Dec. 1. Georgia, Iowa, Louisiana, Nebraska and Utah plan to start the clock on internet sales taxes on Jan. 1, 2019, the Tax Foundation said.
In most states, new online sales taxes apply to companies with a minimum amount of annual sales revenue or transactions in the state. For example, Michigan said online retailers with sales exceeding $100,000 or 200 transactions with Michigan consumers would be subject to sales taxes.


https://www.foxbusiness.com/retail/online-sales-taxes-take-effect-in-these-states

According to this article from Fox Business some States already require it even though 200 transactions this late in the year may not be possible to make it required.

Does anyone have a complete and accurate list of which States are doing what and when? Every time I look I see a larger number starting and dates all over the place..
monidaw1
Friday, December 21, 2018 9:03:55 AM
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Any news yet?

Drop Down Box so we can add multiple Sales Tax Rates for Multiple States?

IT IS ALREADY A LAW that some States have applied and more are only 10 DAYS AWAY!!!!!

A one choice of % "opptional" Sales Tax box customers can check or ignore doesn't cover what could be 50 or more States and Sales Tax Regions with a variety of different % rates for taxation.

monidaw1
Tuesday, January 01, 2019 10:11:44 AM
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monidaw1
Tuesday, January 01, 2019 10:13:09 AM
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monidaw1
Tuesday, January 01, 2019 10:14:51 AM
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monidaw1
Tuesday, January 01, 2019 10:16:34 AM
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monidaw1
Tuesday, January 01, 2019 10:28:52 AM
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This one at least has the beginnings of a list.
https://www.ryandesignstudio.com/internet-sales-tax/

Each state has a different threshold, and they are listed below. Note that states in bold are already active:
Alabama – $250,000 – 10/1/2018
Connecticut – $250,000 AND 200 transactions – 12/1/2018
Colorado – $100,000 AND 200 transactions – 12/1/2018
Georgia – $250,000 OR 200 transactions – 1/1/2019
Hawaii – $100,000 OR 200 transactions – 7/1/2018
Illinois – $100,000 OR 200 transactions – 10/1/2018
Indiana – $100,000 OR 200 transactions – 10/1/2018
Iowa – $100,000 OR 200 transactions – 1/1/2019
Kentucky – $100,000 – 10/1/2018
Louisiana – $50,000 – 1/1/2019
Maine – $100,000 OR 200 transactions – 7/1/2017
Maryland – $100,000 OR 200 transactions – 10/1/2018
Massachusetts – $500,000 OR 100 transactions – 10/1/2017
Michigan – $100,000 OR 200 transactions – 10/1/2018
Minnesota – $100,000 OR 200 transactions – 10/1/2018
Mississippi – $250,000 – 9/1/2018
Nebraska – $100,000 OR 200 transactions – 1/1/2019
Nevada – $100,000 OR 200 transactions – 11/1/2018
New Jersey – $100,000 OR 200 transactions – 10/1/2018
North Carolina – $100,000 OR 200 transactions – 10/1/2018
North Dakota – $100,000 OR 200 transactions – 10/1/2018
Ohio – $500,000 – 1/1/2018
Oklahoma – $10,000 – 7/1/2018
Pennsylvania – $10,000 – 4/1/2108
Rhode Island – $100,000 OR 200 transactions – 7/31/2018
South Carolina – $100,000 – 11/1/2018
South Dakota – $100,000 OR 200 transactions – 5/1/2016
Tennessee – $500,000 – 7/1/2017
Utah – $100,000 OR 200 transactions – 1/1/2019
Vermont – $100,000 OR 200 transactions – 7/1/2018
Washington – $100,000 OR 200 transactions – 10/1/2018
West Virginia – $100,000 OR 200 transactions – 1/1/2019
Wisconsin – $100,000 OR 200 transactions – 10/1/2018
Wyoming – $100,000 OR 200 transactions – 7/1/2017
Note that the nexus threshold counts ALL of your sales, even if they are not taxable. For example, if you sell $50,000 worth of goods to a wholesaler in Ohio and $450,000 worth of goods to retail, you have reached the threshold and must collect and file sales tax on the $450,000 worth of orders. Even if your total tax liability is zero (if you sold 100% wholesale or non-taxable goods) you still have to file every year.
Thundercron
Tuesday, January 01, 2019 3:14:14 PM
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Thanks for posting this BJ. It's a relief to know that the thresholds are so large that there is no way it will ever affect me.
monidaw1
Saturday, February 16, 2019 5:57:56 PM
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Quote:
Thanks for posting this BJ. It's a relief to know that the thresholds are so large that there is no way it will ever affect me.


The dollar amounts are apparently not going to be the problem I expect with most comic book sellers but the

200 Transaction

limit many States are setting up could be easily and should by definition already be affecting CCL's subscriptions which appear to be counting towards those numbers also.

For some of those States that's averaging a sale less than every 2 days and when comics heat up we can go through a large number of small one book transactions in a short time. E-Bay in particular blew me up last week with all those Immortal Hulk and misprint Spawn 293c sales. It's not uncommon to get 2 or 3 sales in a single day from some States when things get hot like Batman Damned recently or that stack of FCBD 2005 Spider-man books.

I need to take a morning and search out to see which other States have joined the lists since January 1st now that their Legislators have had time back at work after the holidays.

I've been hoping the 10 book minnimum thing would help slow down getting to the point of shutting off CCL Out of State sales but people refuse to read or pretend they didn't see it and keep placing orders that don't qualify forcing refunds. Even more annoying, even though they get refunded PayPal Working Capital has already taken out 30% that's no longer there to refund with forcing me to take the cheaper shipping option away until people message that they have read.

I'm keeping track of which States each sale gets shipped too monthly now so we'll see where we are by Summer and if it's neccesary to shut some States off entirely.

For CCL we had 48 transactions with CCL last year. I assume Howie probably had similar numbers so for Virginia when they go active, me and Howie alone would take about half the transactions they could have if they set 200 as the limit.

monidaw1
Sunday, February 17, 2019 10:25:29 AM
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Apparently we just lost the ability to sell to California. 200 or more transactions AGAIN!!!!

https://www.cdtfa.ca.gov/news/18-59.htm

That's averaging LESS THAN 4 Sales a week from CCL, E-Bay and Direct ship to other customers. I don't see any way to stay under that limit without raising minnimum purchase amounts again.

I would actually consider registering with CA and collecting the Sales Tax for that State since it's such a huge % of online sales but CCL has apparently made no attempt to fix the Sales Tax box at check out so we can enter more than 1 tax rate for 1 State. (California it appears has it required to file for EACH District meaning who knows how many different actual % Rates. AUTOMATE THIS PLEASE!!!!!)

A simple drop down box we can add additional States into would help if it allowed different % for each State.

Making it so customers in those States CANNOT CHECK OUT without paying the tax would be even better.

How about having the STATE each sale came from show up on the order page we view all the sales on MyAccount/OrderProcessing.aspx so we can make a quick count without having to open every transaction to look from the last 14 months. A yearly running calculator that filled in automatically as the sales occured would be even better though I'm sure it's a pipe dream to expect it.

CCL directly collecting it for each sale and distributing it to each State themselves like E-Bay does would be even better leaving us out of the mix entirely and making sure the site itself is operating legally. As near as I can tell CCL is already required to do this for at least 4 States with the new Facilitator laws and more coming steadily.

CCL takes 5% of whatever Sales Tax you pay as a customer in fee's. (5% of Shipping also)

Quote:
"Many state legislatures have voted to move forward with cross-border Sales tax now that the US Supreme Court has declared it constitutional. The new state laws require Internet merchants, who meet certain thresholds, to collect taxes on sales shipped into their states. Because of the volume of transactions occurring on the site, eBay meets the threshold of a "Marketplace Facilitator" and is required by law to collect and pay these taxes on behalf of its sellers. eBay does not skim off taxes -- it is illegal in every state. eBay is required by law to remit all collected taxes to the states for which the tax was collected. If any excess taxes were charged, they are to be returned to the purchaser or must be sent to the state. eBay can not keep any of it for any reason.


Reading this makes me wonder if it's even legal for CCL to be doing so.
HeroComics
Sunday, February 17, 2019 10:38:49 AM
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CCL and all interested-

Isn't it proper for CCL to have a mechanism in place to automatically charge the customer based on location?

Seems like CCL is opening themselves up for MANY lawsuits, penalties, and tax liabilities by not addressing the issue.

The key here is tax collection, and CCL DOES NOT provide, at the point of sale, a proper mechanism to collect and pass on the tax, nor do we have the option to collect it until AFTER the sale. (a bookeepers knightmare)

CCL should at least address the issue.

I mean... If I'm wrong... I'll own it.

That comes with CONVERSATION.

I would LOVE to be CORRECTED.

-JC
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SwiftMann
Sunday, February 17, 2019 2:35:11 PM
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I think we are all aware that CCL is an afterthought to its owners.

From the standpoint of taxes, I think it's pretty d@mn unlikely the tax man comes after CCL or any of its sellers. There are 57 sellers on this site. Eight of them with less than 500 items for sale. The IRS is far too understaffed and CCL and its sellers far too small time an operation to ever come up on their radar.

That's purely my opinion and could prove to be totally off base. It also doesn't change the fact that CCL should do the right thing.
monidaw1
Sunday, February 17, 2019 2:55:09 PM
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Quote:
The IRS is far too understaffed and CCL and its sellers far too small time an operation to ever come up on their radar.


I read through a confusing 4 page mesage on this topic this morning elsewhere and it sounds like there's some type of DATA MINING software stuff out there States are using to begin to track down people sliding under the radar.

Even with that I think it represents an actual OPPORTUNITY for small businesses to take advantage of this change IF CCL will get off their complacency and implent a few improvements to give their customers a chance to compete. By being able to stay under the limits you automatically have a 5%, 7%, 10% or more selling advantage over larger businesses that have to charge the tax.

It may no longer be lucrative for dumpers to run off to E-bay with 500 copies of a comic they want to sell near cost with cheap shipping so they could buy all the variants to sell. Now those 500 sales may kick them into the Sales Tax limits. If it doesn't stop them, it should at least add a % to their total price closing the gap some between what CCL and local retail can afford to provide the same book for.

My fear is this data mining stuff and the changes lead to other changes like forcing us to pay for Business Licenses with each State we sell into.

What if the auditors start requiring us to physically come to far away States to get auditted?

Are we about to start getting double taxed as datamining forces us to start charging sales Tax TWICE, for the State we're leaving as well as the State we're shipping too? Nailbiting

How is this going to affect drop shippers? They're in State A, buying the item from State B and wanting it shipped to State C? How many and which States get Sales Tax added? Fortuantely higher limits seem to stop most of them up front. Whew!

Here's something I didn't know.
Quote:
Consumer's Use Tax for Individuals
Goods are subject to either sales or use tax, not both. You pay consumer's use tax on the use of goods in Virginia when you didn't pay sales tax at the time of purchase.
When do you owe consumer's use?
Generally, you owe consumer's use tax on tangible items you rent, lease, or buy that you didn’t have to pay sales tax for when you purchased them. Common examples:
You bought something on the internet or through a mail order catalog and didn’t pay Virginia sales tax. Most online retailers collect Virginia sales tax, but if you order from a company that doesn’t, you need to pay use tax.
You bought something in another state that doesn’t charge sales tax, but brought the items back to Virginia to use here.
Items exempt from sales tax in Virginia are also exempt from consumer's use tax.
Common exemptions:
Nonprescription drugs and medicines you buy for the cure, easing, treatment, or prevention of disease in human beings
Other durable medical devices and equipment that is suitable for home use (Va. Code § 58.1-609.10(9)-(11))
Magazine and newspaper subscriptions (Va. Code § 58.1-609.6(3))
Purchases from out-of-state mail order catalog(s) totaling $100 or less for the calendar year. If you spent more than $100 on these items, then you must report the purchases and pay consumer use tax on the total cost.
Consumer's use tax rates:
The use tax rate is the same as your sales tax rate:
7% in Historic Triangle region (City of Williamsburg, and Counties of James City and York)
6% in Northern Virginia and Hampton Roads regions
5.3% anywhere else in Virginia
2.5% on eligible food items (generally staple foods and cold foods packaged for home consumption, such as from a grocery store. Does not include hot, prepared food meant to be eaten immediately, such as food from a restaurant. More information on eligible food items)
How to file and pay consumer's use tax:
Report and pay any tax due when you file your individual income tax return (line 35 if filing on paper). If you don’t owe any tax, you will need to enter “00” on the return.
File Form CU-7 , Virginia Consumer’s Use Tax Return for Individuals, if you don’t need to file an individual income tax return, but owe consumer’s use tax.


Basically even if the CCL store doesn't charge you, you're suppossed to voluntarily be paying the Sales Tax as a USE Tax when you file your taxes each year.
Thundercron
Monday, February 18, 2019 9:00:26 PM
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SwiftMann wrote:
I think we are all aware that CCL is an afterthought to its owners.

From the standpoint of taxes, I think it's pretty d@mn unlikely the tax man comes after CCL or any of its sellers. There are 57 sellers on this site. Eight of them with less than 500 items for sale. The IRS is far too understaffed and CCL and its sellers far too small time an operation to ever come up on their radar.

That's purely my opinion and could prove to be totally off base. It also doesn't change the fact that CCL should do the right thing.


I heard that after the IRS reopened after the shutdown that it would take one year's worth of manhours to open and process the five millions pieces of unopened mail they received.
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