8% NY state tax on resold miners

[mikespax]

I just got hit with an 8% NY state tax on $66k worth of declared miners I resold back in 2017. So a bill for about $8k.

https://imgur.com/a/w4bwtgy

Anybody see any way out of this, or think a lawyer might be able to help me out? Otherwise, I'll have to take out a loan or consider bankruptcy.. :/

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[gentlemand]

Did you flip them immediately? Did you import from abroad directly into NY state and then sell to another state or were they sold to someone in NY state?

Going on this - https://help.cbp.gov/app/answers/detail/a_id/295/kw/new%20york%20state%20sales%20tax/session/L3RpbWUvMTU2NTQzMDYwNC9zaWQvemUxa2tYbG8%3D  - it looks like they get occasional updates that they chase up rather than it being automated so it may be quite common.

[1Referee]

Anybody see any way out of this, or think a lawyer might be able to help me out? Otherwise, I'll have to take out a loan or consider bankruptcy.. :/

I'm not sure what the cost is of a lawyer to look into your case, but if it's like $100-$200 to review your declaration to see if you made a mistake you can roll back, then go for it. $8000 is a pretty steep amount and definitely worth digging into.

If that doesn't yield any progress and you have to pay $8000 no matter what, best option is to contact the state body to see if it's possible to make monthly payments. If you explain them your financial situation they should be open to it. Taking out a loan isn't the best course of action. That will only make things worse.

[DaveF]

If you sold them in NY and did not collect sales tax then yeah, you probably owe it.
If you sold them out of NY I am not sure of how that works in terms of collecting for other states and remitting it to the other sates.
This is not DaveF selling a $850 miner to mikespax this is what NY thinks is $66k of hardware @ wholesale you sold for a profit.

With that being said, if you can prove a lot went out of state it might not be that bad.

-Dave

[coolcoinz]

Just to make things clear, it's not a special tax coming from the NY bitlicense, but a normal 8% sales tax.

The combined sales tax rate for New York, NY is 8%. This is the total of state, county and city sales tax rates.

If you are a resident you probably do owe it. It's not a novelty. Weren't you aware of this tax?
You can always consult a lawyer. Maybe there's a loophole that will allow you to at the very least lower the amount that you owe.

[avikz]

I just got hit with an 8% NY state tax on $66k worth of declared miners I resold back in 2017. So a bill for about $8k.

https://imgur.com/a/w4bwtgy

Anybody see any way out of this, or think a lawyer might be able to help me out? Otherwise, I'll have to take out a loan or consider bankruptcy.. :/

If it is already declared in 2017, I don't see any way out of this, even if you hire a lawyer! And most importantly a lawyer is "Bunch of ball-washing bastards!" as stated in the movie "The Shawshank Redemption" by Captain Hardley! So decide your next step wisely! A good tax lawyer in NY will cost you a fortune!

Instead, my suggestion will be to pay off the tax demand especially when you have declared the sell of miners in 2017! If you haven't declared this in the first place, you could have contested it, now the ball is in the court of tax department.

[Theb]

Just to make things clear, it's not a special tax coming from the NY bitlicense, but a normal 8% sales tax.

The combined sales tax rate for New York, NY is 8%. This is the total of state, county and city sales tax rates.

If you are a resident you probably do owe it. It's not a novelty. Weren't you aware of this tax?
You can always consult a lawyer. Maybe there's a loophole that will allow you to at the very least lower the amount that you owe.

If you read the letter provided with a link in the OP's thread you will see that he have imported a personal property from abroad which I think is the main cost of why he has having an additional tax liability in the first place. There's really no problem if the miners he sold came from US soil but the miners he have bought and resold came outside of the US and it's territories which is really subject to tax even if it was second hand. The only thing I can think of is to either settle a lower amount or try to find tax deductions related to the tax involved. I would also do some background checks on how they have come to the price of 7,921$ so seeing a breakdown/computation for it is necessary to see if they are accurate during 2017.   

[philipma1957]

I just got hit with an 8% NY state tax on $66k worth of declared miners I resold back in 2017. So a bill for about $8k.

https://imgur.com/a/w4bwtgy

Anybody see any way out of this, or think a lawyer might be able to help me out? Otherwise, I'll have to take out a loan or consider bankruptcy.. :/

You are a sales tax cheat in the eyes of New York State.

Ask them to offer a payment agreement  and pay them on time.

It sucks but it is legit on their part.

[mikespax]

I immediately sold everything online via eBay. Thanks for the advice, I'll start doing some homework.

[Theb]

I immediately sold everything online via eBay. Thanks for the advice, I'll start doing some homework.

Huh? What are you talking about? What did you just sell in ebay to remove your already existing tax obligation? Didn't you just sold all the miners in 2017 that's why you have a tax obligation now? You wouldn't even have local sales and compensating tax if you didn't sell anything coming from abroad. Or you are talking about some of the miners you are still selling now? If that's what you are talking about you just made your tax obligation bigger because you have sold another miner online, it doesn't really mitigate anything at all.

[mikespax]

Huh? What are you talking about? What did you just sell in ebay to remove your already existing tax obligation? Didn't you just sold all the miners in 2017 that's why you have a tax obligation now? You wouldn't even have local sales and compensating tax if you didn't sell anything coming from abroad. Or you are talking about some of the miners you are still selling now? If that's what you are talking about you just made your tax obligation bigger because you have sold another miner online, it doesn't really mitigate anything at all.

Hey, I guess there's a miscommunication here, so let me be explicit.

In 2017, I purchased a large number of cryptocurrency mining machines directly from Bitmain, shipped to NYC. Many of these were purchased months or weeks before I would actually receive them. They were all then received in NYC to my relative's personal home, and then shipped out to customers all around the world.

And yeah, 99% of these were sold on eBay, so I have good records of everything going on.

Does that help?

If it means anything, I do everything personally and have not incorporated, or have any official business.

[DaveF]

Starting with. This is not tax advice, I am not a tax lawyer, I am not an accountant, I have no real knowledge of this just what I read online.

As far as I can tell, so long as you can prove you sold them and shipped them out of state you are fine from the *sales tax* side of things.

https://www.thebalance.com/sales-taxes-across-state-lines-4058714

You might now get a letter from the income tax side of the NY tax people. If you paid $66k and sold them for $75k you know you are going to get a note asking for their share of the $9k profit. But, you can deal with that if / when it comes.

-Dave

[Theb]

Huh? What are you talking about? What did you just sell in ebay to remove your already existing tax obligation? Didn't you just sold all the miners in 2017 that's why you have a tax obligation now? You wouldn't even have local sales and compensating tax if you didn't sell anything coming from abroad. Or you are talking about some of the miners you are still selling now? If that's what you are talking about you just made your tax obligation bigger because you have sold another miner online, it doesn't really mitigate anything at all.

Hey, I guess there's a miscommunication here, so let me be explicit.

In 2017, I purchased a large number of cryptocurrency mining machines directly from Bitmain, shipped to NYC. Many of these were purchased months or weeks before I would actually receive them. They were all then received in NYC to my relative's personal home, and then shipped out to customers all around the world.

And yeah, 99% of these were sold on eBay, so I have good records of everything going on.

Does that help?

If it means anything, I do everything personally and have not incorporated, or have any official business.

Yeah, you did clarify a lot of things on your current situation and the way I understand it is you still need to pay the taxes you owe because they are valid. The way I see it is you or your family acted out as a reseller of the mining equipment after you have received it from shipping, you never used the mining rigs personally so you are in fact just reselling items that came from abroad that is why you have a local sales and compensating tax from the State of New York. Selling it all now doesn't extinguish your tax obligations because the tax itself is about you reselling the mining equipment you have. What you did now just make your tax obligation bigger because you continued on selling them after the letter.

[DaveF]

mikespax, any update?
Just wondering if you spoke to a tax person or lawyer or the NYS tax people and what they said.
Or, if they told you you can't talk about it that's fine too.

-Dave