Re: [AGA-mcm] Vendor Update

["S. Hieber" <shieber@yahoo.com>]

This is as I see it but I am not an attorney, much less a
tax attorney and I'm not offering, nor am I qualified to
offer, legal counsel; I'm only giving my personal
understanding based on the info I've found:

Before stating what I think are the options, let me
mention, if collected and paid, AGA2K4 would charge the tax
payment as an tax expense against AGA2K4. Also, I've
estimated the sales tax liability at about $500. Also, if
either GWAPA or AGA has sales at the convention independent
of the other organization, then there would be a sales tax
liability on those sales for the respective seller
independent of the other.


Option 1) GWAPA registers with VA Dept of Taxation and gets
a sales tax account; tax is collected for sales *at* the
convention and it is posted that the prices include VA
sales tax of 5%; GWAPA pays the tax using the downloadable
from from the state;

Note on Option 1):

If GWAPA is not incorporated, then I'm not sure who would
technically be liable under the GWAPA name. I don't know if
GWAPA has as legal standing as an entity unless
incorporated. And when I say I don't know, I mean it beats
the heck out of me.

Note on Option 1)
The registration might not be processed in time but as long
as payment is made in good faith and in a timely fashion, I
don't think there would be any problem with the state.

Option 2) AGA registers with VA Dept of Taxation and gets a
sales tax account; tax is collected for sales *at* the
convention and it is posted that the price includes VA
sales tax; AGA pays the tax using the form for out of state
businesses; AGA files an account change with the state to
end its registration and tax account in VA; 

Note on Option 2):
The registration might not be processed in time but as long
as payment is made in good faith and in a timely fashion, I
don't think there would be any problem with the state.


Option 3) the tax is ignored. No one registers, Nothing is
posted.

Note on Option 3):
If we are reported to the state, criminal misdemeanor
(Class 1 or Class 2 or both) charges could result, along
with financial penalties.

Note on Option 3):
If court appearances were required, I'm not sure who would
appear on AGA's behalf.

Some general thoughts:

Making suitable changes in the text above (like "sales" to
"income" and "register" to "file tax return"), and the
above applies for state and Federal income tax, except that
AGA is exempt from income tax in its home state, MA, the
state of its incorporation.


I'm not recommending a course of action. The judgment of
the other members of the Advisory Committee undoubtedly is
as at least as good as mine or better than mine.

sh
--- Ghazanfar Ghori <GhoriG@gmail.com> wrote:

> What options do we have at this point?

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