Documenting tax-exempt status using sales receipts

Joined
Mar 18, 2011
Messages
1
Reaction score
0
Hi! I've got a new customer that is re-selling my product. He claimed his company is tax-exempt, so I asked for a copy of his Illinois tax ID document, but sold him a few items in the meantime, anticipating the document. When he finally gave it to me, it had a different address, and a different company name than the name of the company on the checks he had been paying me with, and the name I had been putting on the receipts. He told me that the company has multiple locations (which I know to be true) and that the company on the checks (and the receipts I make him sign) owns the company that the tax ID number document is for.

My question is, am I legit not charging him tax as-is? If not, would it be acceptable to put the other company name (the one on the tax ID document) on the receipts that I have him sign, and then he continues to pay me with checks that have the other company name? Or is it critical that the tax ID number document, the company name on the checks, and the company name I write on the receipts, are all 100% identical?

It's frustrating because he and his partner apparently have a complicated business structure, and the person I deal with does not seem to understand it fully. I don't want to pester him too much for fear of losing him as a customer, but obviously I can't risk doing this incorrectly and getting fined/taxed in an audit because of it. Perhaps I'm being too nitpicky, and I'm fine due to the fact that I have a tax ID document from them that they are associated with, or perhaps their signature on receipts with the right company name would make this legit, even if they are paying with checks from the other company name?

Thanks in advance!
 
Last edited:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top