Method for collecting sales and/or use taxes on sales that are made via the internet and/or catalog
View Patent ↗A method that allows taxing jurisdictions to collect sales and/or use taxes from sales that are made via the internet and catalogs. The method also makes it easier for sellers to comply with the taxing jurisdiction's mandated seller administrative functions. The foregoing is accomplished by using an agent to perform the sales tax administration functions of a seller, relieving the seller of as much of the burden of compliance as possible.
1. A method for collecting sales and/or use taxes on remote sales, said method includes the steps of:
A) collecting information regarding remote sales made by buyers;
B) calculating the correct taxing jurisdictions sales and/or use tax to be paid by buyers for remote sales;
C) collecting by sellers from buyers the correct sales and/or use tax;
D) collecting by an agent the correct sales and/or use tax received by sellers;
E) segmenting by the agent, the seller's sales and/or use taxes and the information collected by the sellers for particular taxing jurisdictions into different data bases for each taxing jurisdiction, wherein the identity of the seller is not revealed to the taxing jurisdiction and each taxing jurisdiction may only view its own data base if there is a sufficient suspicion of fraud based upon audit data; and
F) paying each taxing jurisdiction the taxes that are due.
2. The method claimed in claim 1 , wherein buyers are given a receipt for the taxes they have paid.
3. The method claimed in claim 1 , wherein the seller sales are also segmented for each buyer.
4. The method claimed in claim 1 , further including the step of:
reporting to the taxing jurisdictions the taxes that have been collected.
5. The method claimed in claim 1 , further including the step of:
filing reports for sellers with the taxing jurisdictions for the taxes that have been collected.
6. The method claimed in claim 1 , further including the step of:
filing tax returns for sellers with the taxing jurisdictions for the taxes that have been collected.
7. The method claimed in claim 1 , further including the step of giving sellers financing to pay the sales and/or use taxes that are due.
8. The method claimed in claim 1 , wherein the buyer information segmented by the agent may be accessed by an identification number.
9. The method claimed in claim 1 , wherein the seller information segmented by the agent may be accessed by an identification number.
10. The method claimed in claim 9 , wherein a taxing jurisdiction will be able to access seller information segmented by the agent for that jurisdiction with an identification number.
11. The method claimed in claim 10 , wherein the identity of the seller remains secret.
12. The method claimed in claim 11 , wherein the agent reveals the identity of the seller if the segmented information identifies improper conduct.
13. The method claimed in claim 10 , further including the step of notifying a seller that a taxing jurisdiction is studying its segmented sales and/or use taxes collected.
14. The method claimed in claim 10 , wherein a seller will be able to review the seller's segmented sales and/or use taxes collected before the taxing jurisdiction studies the seller's segmented sales and/or use taxes collected.
15. The method claimed in claim 10 , wherein a taxing jurisdiction will be able to access the segmented sales and/or use taxes collected only after specified time period has passed.
16. The method claimed in claim 1 , wherein the taxing jurisdictions pay the agent for services rendered by the agent.