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so here's my situation:
my husband's business is a service business. (not subject to sales tax)
he will charge a flat fee to do a job and collect that flat fee. if he gives an estimate of $1000, he collects $1000. end of story. there is not mention, calculation or collection of sales tax anywhere during the process.
his bookkeeper last year didn't understand that services are not subject to sales tax - so when she prepared invoices for the accountant (strictly for accounting purposes not for customers to receive or see) she would adjust the figures to back sales tax out of the total. for example instead of invoicing $1000 with no tax, she would invoice like $912 + tax = $1000 total.
The accountant did not catch this. (THAT'S ANOTHER ISSUE) and filed and paid the sales tax.
MY QUESTION IS THIS
how do i correct this and have the money refunded?
so far, i'm told by the state that i must refund money then request the refund. the problem is that the money was not collected to be refunded. so what do i do?
thanks in advance.
my husband's business is a service business. (not subject to sales tax)
he will charge a flat fee to do a job and collect that flat fee. if he gives an estimate of $1000, he collects $1000. end of story. there is not mention, calculation or collection of sales tax anywhere during the process.
his bookkeeper last year didn't understand that services are not subject to sales tax - so when she prepared invoices for the accountant (strictly for accounting purposes not for customers to receive or see) she would adjust the figures to back sales tax out of the total. for example instead of invoicing $1000 with no tax, she would invoice like $912 + tax = $1000 total.
The accountant did not catch this. (THAT'S ANOTHER ISSUE) and filed and paid the sales tax.
MY QUESTION IS THIS
how do i correct this and have the money refunded?
so far, i'm told by the state that i must refund money then request the refund. the problem is that the money was not collected to be refunded. so what do i do?
thanks in advance.