Amazon, Google and taxes, oh my!

January 8, 2010

The credit card bills with Christmas charges are starting to show up and, like millions of other shoppers, the hubby and I spent much of our holiday budget at virtual storefronts.

Such dot-com spending habits are of great interest to state tax departments. I've blogged before about cities and states going after online operations, as in Chicago's tax lusting after eBay and StubHub transactions.

But the favorite tax target of most state revenue offices is Amazon.

The Seattle-based seller collects sales tax in just a few states. Last year, however, the quest for more money prompted several revenue-hungry state legislatures to try to force Amazon and other retailers
to collect sales tax on purchases made by their online customers.

The states' argument? Web retailers have a physical presence, known in legalese as a nexus, in the tax-seeking states because of the online companies' ties to
locally based affiliates. These are other Web sites that advertise and link to Amazon products and from which the affiliate site gets a percentage of any sales or Web page clicks.

Amazon was pretty successful in fighting back in 2009, in large part by cutting off affiliates. It looks like the books-and-more seller will have to do the same in 2010.

Lawmakers
in
a number of cash-strapped states are poised to revive efforts to
make Amazon.com and other internet retailers collect sales tax
, reports Seattle's TechFlash.

If the state tax collectors ultimately succeed, it could have far-reaching consequences not only for Amazon, but other companies that depend on e-commerce.

How often do you see sales taxes added to your online orders? Have you ever passed on an electronic purchase because of an added tax charge?

Mon Dieu! Google's a tax target, too: Another Internet giant also is in tax cross hairs. But the tax collector this time is French.

In fact, the predominant search engine isn't alone. CNETNews says the French government is recommending that Google, MSN,
Yahoo and other big advertising companies
, as well as Internet service
providers, be taxed.

The report contends that Google is "profiting without any consideration" for music artists and
book publishers.
Those sectors of the French economy would get the added revenue, an estimated $28 million, from any new tax.

Christmas tree ceremony at the Elysee Palace in Paris

French President
Nicolas
Sarkozy will have the last word on whether to push the report's proposals (there are 22 in all) through the legislative process.

By the way, one of the authors of the report is a former music
executive who produced the song stylings of France's First Lady Carla
Bruni-Sarkozy, pictured above with her country-running, tax-deciding hubby.
Conflict of interest much?

France's Internet tax is is still just a suggestion, but it's getting a lot of coverage. TaxProf has a roundup of articles on the Google tax.

I can't wait to see what kind of home page graphic Google comes up with for this proposal!

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Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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