Methods and systems for recovery of sales and use taxes on cross-state direct sales, mail order, and electronic commerce

摘要

Tax revenue losses to electronic commerce generally arise because electronic commerce enables a significant increase in remote sales, thereby causing a shift from collecting sales tax at the point of sale to collecting use tax in the state. Numerical studies show that the sales/use tax base is quickly eroding in the United States and countries in the world due to online, Internet electronic commerce purchases. Establishing an effective, accurate and efficient system for recovering sales and use tax by forming an electronic commerce Tax Recovery Center is designed. This Tax Recovery Center will be the hub of all electronic commerce information for all fifty states. Business transaction data on the Internet will be collected, secured and delivered to each state revenue agency in the format that each individual state requests. Geographic Information Systems (GIS) technology will be used to provide jurisdictions and municipalities' data to assist and enforce collection of use tax from instate purchasers. Out of state sellers, on which local government does not have jurisdictional grip cannot require collection of use tax from their customers. Vendors transactions records on the Internet will be acquired, collected, and processed, so that each state tax revenue agency will be able to enforce the existing use tax law. A 1099x tax form or equivalent tax notice will be furnished to purchasers to allow payment of use tax for the previous calendar year. In-state purchasers report use tax on the appropriate line of the state income tax return form.