posted
Both of our companies were audited yesterday by the tax man. No problem as Janis keeps immaculate books and we have nothing to hide.
Even so there is always the chance we have interpreted some aspect of the tax law wrong or somehow missed something. Audits in my book are up there with going to visit a dentist. They can be just as painful.
Sure enough he came across one item in his search which meant we were short on the tax we had remitted. The large rusty steel sign we had built last year was built as a labor only project with our customer supplying the materials. Since they had a large truck and a forklift at the other end they decided they would also pick up and install it. My carefully crafted invoice reflected that deal. And I had mistakenly thought since we were supplying labor only it meant the sign was exempt from sales tax.
Apparently not. It wasn't a massive amount but it was still a fair chunk of change.
When he questioned it I thought back to the project and remembered we had after all delivered and installed the sign ourselves, meaning it was exempt from tax. Our customer delayed picking up the sign and eventually we decided to deliver and install it ourselves to get it out of our way. I also wanted some good pictures of the sign installed so I could enter it in the upcoming Signs of the Times annual contest. But how to PROVE it to the tax man when the paperwork proved otherwise??
Then I remembered the goofy heavily altered photo I had posted here as a spoof of our small truck overloaded with the sign. The picture had been photo shopped to make the steel sign look MUCH HEAVIER than it really was. A tattered copy was stuck on our bulletin board which I showed him.
He also asked to see a picture of the sign installed... and I just happened to have one - printed in Signs of the Times magazine as a winning entry in this year's contest.
The tax man shook my hand congratulating us on our first place award. He also accepted the photos as proof that we did indeed install the sign - contrary to what the paperwork said.
The rest of the audit went smoothly and at the end we owed no extra tax.
The feeling was just like coming away from the dentist, with no cavities!
grampa dan
-------------------- Dan Sawatzky Imagination Corporation Yarrow, British Columbia dan@imaginationcorporation.com http://www.imaginationcorporation.com
Being a grampa is one of the the most wonderful things in the world!!! Posts: 8739 | From: Yarrow, B.C. Canada | Registered: Nov 1998
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posted
yeah, what he didn't tell you was that he is forwarding the photos on to the RCMP, LOL. It'll be so nice to meet you at the Dixie meet, gramps.
-------------------- Ricky Jackson Signs Now 614 Russell Parkway Warner Robins, GA (478) 923-7722 signpimp50@hotmail.com
"If I have seen further it is by standing on the shoulders of giants." Sir Issac Newton Posts: 3528 | From: Warner Robins, GA | Registered: Oct 2004
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Good work Dan and Janis...those audits can really be a pain. Laurie keeps good records too. Now...did Ricky say you're going to Dixie???? If so I'll pack some extra Signdogs and mark your bags...and your rental car and your portfolio and your camera...hehehehe.
posted
I'd LOVE to go to Dixie... but sadly its not in the cards this year... sorry!
I'm sure I haven't YET found all the Dawg stickers from the last meet here at the ranch... still lookin and laughing each time I locate one.
We had put a jack under the front of the truck to lift it up... and also adjusted things a little in Photoshop as well as removed the jack. THe funny part is I no longer had a copy of the original picture... so this one had to do.
Have fun in Dixie!
-grampa dan
-------------------- Dan Sawatzky Imagination Corporation Yarrow, British Columbia dan@imaginationcorporation.com http://www.imaginationcorporation.com
Being a grampa is one of the the most wonderful things in the world!!! Posts: 8739 | From: Yarrow, B.C. Canada | Registered: Nov 1998
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The tax man thought our EDUCATIONAL trips to Disney World, Disneyland, California, Disneyland Paris & Disneyland Tokyo were just fine. He expressed a desire to come along next time. And besides... we've only been to Disney World 4 times... so far.
Before he came to do the audit he had taken a GOOD look at our web site to get a better idea of the nature of our business. He was looking forward to the visit with great anticipation. He LOVED the studio which is where we did the audit.
-grampa dan
-------------------- Dan Sawatzky Imagination Corporation Yarrow, British Columbia dan@imaginationcorporation.com http://www.imaginationcorporation.com
Being a grampa is one of the the most wonderful things in the world!!! Posts: 8739 | From: Yarrow, B.C. Canada | Registered: Nov 1998
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Only you Dan, could get all pumped up and cheery about having the tax man visit. Your one of a kind for sure...I suppose you put a signdog sticker on his laptop...I knew those things would come back to bite me
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Awaiting the report from Dawggie when the tax man arrives at his place.
Keep him busy Duncan..wear him out..don't need that screwing another time.
Last time was in the 70's...6 months of purgatory...and I was found to be clean..but what a bunch of bull crap to have to go through just to show that yer honest..
I wouldn't wish it on my worst enemy!!
-------------------- Dave Grundy retired in Chelem,Yucatan,Mexico/Hensall,Ontario,Canada 1-519-262-3651 Canada 011-52-1-999-102-2923 Mexico cell 1-226-785-8957 Canada/Mexico home
posted
Had that experience myself a couple of years ago. We are close to the Michigan state line so we do a lot of business over the border. Had a customer that buys a couple thousand dollars of signs per year and picks them up here. Some where along the line they changed the law that if the customer picks them up at your facility it becomes the same as an Indiana sale. Didn't come out as clean as you Dan, there were a couple of other smaller clients too, they went back three years and by adding penalties and interest handed me a bill for 3600.00. OUCH!
-------------------- Robert M. Kistler South Bend Screen Process, Inc. 2018 S. Franklin St. South Bend IN 46613 Posts: 131 | From: South Bend Indiana | Registered: Jul 2003
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