Laws On Sales Tax Fraud  

Some states in the US have no sales tax, while others have introduced a common sales tax rate regardless of the city and zip code. States with no sales tax are Alaska, Delaware, Montana, New Hampshire and Oregon.

The states that have one rate for the entire state are Connecticut with six percent, Washington DC with six percent, Indian with seven percent, Kentucky with six percent, Maine with five percent, Maryland with six percent, Massachusetts with 6.25 percent, Michigan with six percent, Mississippi with seven percent, New Jersey with seven percent, Rhode Island with seven percent, and lastly West Virginia with six percent. Other states have differing rate throughout their respective states.

This tax is paid by the consumers and it has to go the state. However, it has been noticed that several times vendors and merchandisers do not pay this money to the state. This boils down to sales tax fraud.

States use revenue from sales tax to improve education facilities for children, pay law enforcement and firefighters and also build and improve infrastructure in the state. So, when this kind of fraud is committed, not just the state but even people are affected. So, naturally there are laws in place to tackle this kind of fraud that is committed very frequently by vendors.

Basically, when the state revenue department finds out about sales tax fraud, it will first audit the business concerned. Then on minutely checking the books and discovering the fraud, the owner of the business will be charged for sales tax fraud. This kind of fraud is viewed as a felony and is liable for prison sentence. Even the business can be shut down. The prison sentence can vary from a couple of years to more.

Generally, each state has its own sales tax fraud laws and each case is handled based on these laws.

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Laws On Sales Tax Fraud
 

Definition-Of-Tax-Fraud      Money that is paid to the government by an individual or business is known as taxes. Paying tax is obligatory unless exempted by tax laws. If taxes are not paid in full or part, then it is called as tax fraud. One can do this by false book keeping, concealing the money earned or assets possessed. More..

 


 

 

 
   
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