Research!

[David ilvedson]

> Date:          Thu, 20 Feb 1997 18:55:43 -0500 (EST)
> From:          Les Smith <lessmith@buffnet.net>
> Subject:       Re: Research!
> To:            pianotech@byu.edu
> Reply-to:      pianotech@byu.edu

Les and List,

Awhile back California was thinking about a service tax.  I
don't know what happened but I haven't heard anymore.  Do any
other States have service taxes?

ilvey, RPT
Pacifica, CA


> Hi, Jim.
>
> Just a brief note that may have some effect on your research.
>
> Most states that require the technician to collect sales-tax on their
> work, mandate that the accrual method of accounting be used. That is
> to say that the technician may be responsible for remitting the sales
> tax to the state BEFORE he actually is paid and collects it from the
> customer. EX: it's the last day of a sales-tax quarter. You complete
> a $1000 job for a customer to which you add 8% sales tax, $80, making
> the bill $1080. You leave the bill, expecting to be paid next month.
> You are required, by the accural method of accounting, to remit the
> $80 sales tax, ON THE DAY THE WORK IS COMPLETED, even though you haven't
> yet been paid for it.  Bummer, huh? On the plus side, you're also al-
> lowed to deduct expenses as they accrue, rather than at the time you
> actually pay them.
>
> My point is this. You have to use the same accounting method on both
> your Federal and State returns. You can't use cash for one and accrual
> for the other. Thus, if you collect sales-tax and your state requires
> the accrual method of accounting, you Have to use the accrual method
> on your Federal return too. You DON'T have a choice. So what type of
> accounting method a particular tech may be using, frequently is not a
> matter of choice. I think we would all like to be able to use the cash
> method, but many times this isn't possible. The regulating authorities
> like to make life as complicated as possible, as the accrual method
> demonstrates. Given the complications of the accrual method and the
> tenacity  of the regulatory authorities when it comes to dealing with
> the self-employed (either full-timers, or part-timers), I can't imagine
> anyone NOT using their computer to keep things straight. Also, speak-
> ing from experience (DON'T ask how! :) ) the authorities seem much more
> likely to believe computer-printouts of financial records, than they do
> hand-written ones.
>
> Life as a piano-technician would be much simpler, if we didn't have to
> constantly worry about the reams of paper-work and record-keeping re-
> quired by the regulatory agencies. I'm a pianoman. Not an accountant!
>
> Les Smith
> lessmith@buffnet.net
>
> On Thu, 20 Feb 1997 JIMRPT@aol.com wrote:
>
> > List;
> >  The fourth biggest lie in the world is "I don't agree with what you say, but
> > I will defend until death your right to say it."
> > Lighten up, enjoy life, and ignore that which you find to be infantile.
> >  Nough said.
> > On a different note, re: my request for assitance on bookkeeping methods. To
> > this point I have received responses from well over 10% of list subscribers.
> > My sincere Thanks to all those who have responded. This sampling more than
> > makes up a statistically  reliable sampling of available subscribers and will
> > add to the article. Thanks to all who have participated and I will continue
> > to add to the data from those who might wish to add to it. I will post a
> > synopsis of the data in a few days.
> >  With Gratitude.
> >  Jim Bryant (FL)
> >
>
>
>