Farriers are often the go-to source for hoof-care and general equine advice for clients, so it is natural that product use comes up. This expertise provides the sales opportuntities.
Horse Shoe, N.C., farrier Buck O’Neil, who holds a master’s degree in taxation and has experience as a CPA, knows a thing or two about taxes. If you are selling to products to clients, , he is quick to raise concern with the tax difficulties that may arise in online sales.
As the vendor in that state doing business, it is your responsibility to pay sales tax on product sales. If you fail to collect from it from the buyer, the government still expects you, the vendor, to pay those taxes. This may open you up to greater issues with state and federal revenue services.
“People think the government will only look 3 or 6 years into your tax records with probable cause,” he says. “That’s not the case — that’s without probable cause. If the government suspects a pattern, it will go back as far as it wants.”
O’Neil preaches maintaining thorough business records. This includes documenting product sales, including taxes. Even if you dump inventory that you did not sell, you will need proof that you did.