This is an important point.Date: 10/27/2009 2:05:26 PM
Author: Rockdiamond
HI Ambo,
AS Stone says- there''s absolutely nothing illegal about paying with cash.
AS Sara pointed out, it IS a big NO NO if a store is trying to get you to collude in cheating the state out of sales tax.
The other problem for you, as the buyer, is that you will have less recourse than if you paid using ''official'' channels such as bank wire transfer, or credit card.
Be careful out there!
thritto.. on a diamond purchase especially, what if it turns out not what you wanted or even asked for? how will you protect yourself then?Date: 10/27/2009 2:20:12 PM
Author: Lorelei
This is an important point.Date: 10/27/2009 2:05:26 PM
Author: Rockdiamond
HI Ambo,
AS Stone says- there''s absolutely nothing illegal about paying with cash.
AS Sara pointed out, it IS a big NO NO if a store is trying to get you to collude in cheating the state out of sales tax.
The other problem for you, as the buyer, is that you will have less recourse than if you paid using ''official'' channels such as bank wire transfer, or credit card.
Be careful out there!
Date: 10/27/2009 3:46:55 PM
Author: Paul-Antwerp
Even more important, and I am shocked to see how limited the professional knowledge about this subject is in the States, a jeweler is risking a lot if he accepts cash as a payment.
A cash payment is a strong red flag, pointing to possible money laundering, and a jeweler accepting cash will have to prove that he thoroughly investigated the customer, to make sure that he was not being paid by proceeds from any criminal activity. And being charged with money-laundering brings you very close to terrorist-financing in the current book of criminality, so I would advise both jeweler and consumer not to consider this path.
Live long,
yes...there''s bad intentions there...this is illegal.Date: 10/27/2009 1:50:51 PM
Author:ambo
... paying with cash to avoid taxes is illegal and not recommended...
Big point.Date: 10/27/2009 2:20:12 PM
Author: Lorelei
This is an important point.Date: 10/27/2009 2:05:26 PM
Author: Rockdiamond
HI Ambo,
AS Stone says- there''s absolutely nothing illegal about paying with cash.
AS Sara pointed out, it IS a big NO NO if a store is trying to get you to collude in cheating the state out of sales tax.
The other problem for you, as the buyer, is that you will have less recourse than if you paid using ''official'' channels such as bank wire transfer, or credit card.
Be careful out there!
That having been said, I believe that someday there will be laws passed that require us to collect and distribute taxes to the various states. It will be a nightmare unless there is some kind of uniform collection and amount as it is very difficult for me to know which of the two or three hundred various taxing districts and rates you live in, and that is just within the state of California. Nationwide there are literally thousands of differing tax rates depending on exactly where you live, a veritable nightmare for someone collecting taxes on the opposite side of the nation.Date: 10/27/2009 4:24:30 PM
Author: Regular Guy
I dunno...seems to me...cash is king.
I can''t imagine a vendor refusing it, under any circumstances, and feeling as though they have any obligation to anybody as to understanding its source.
Then you need to practice up on your imagination skills. As a vendor I am happy to accept cash of any amount. I am also happy to require you to give me your social security number if the amount is over $10,000 so that I can properly report it on the required form. I know that when I make deposits to the bank in more than three or four thousand that the bank will be putting it in its report to the Feds. I have in the past and will probably in the future have to let you walk if you refuse to give me the proper information to fill out my report on a $10,000 or more sale, I am NOT going to jail for failing to report such a transaction.
Trust me, we feel this obligation VERY strongly.
That said...yes...I think when paying with cash...maybe virtually similar to bank wire (not sure), the buyer has limited recourse.
Not so long as the client was smart enough to get a receipt from the vendor. If you live in my state and pay cash you WILL be paying sales tax and getting a receipt. If you are from out of state and sending me cash I am going to be reporting the transaction no matter the size, it stinks a great bit, see the last sentence of the first paragraph re jail.
Also...
yes...there''s bad intentions there...this is illegal.Date: 10/27/2009 1:50:51 PM
Author:ambo
... paying with cash to avoid taxes is illegal and not recommended...
That said...consistent with the fact that it seems a common practice for vendors to actually display on their sites that they won''t be collecting tax, unless you happen to be in state,
That is in full compliance with the current laws. Under the laws in ALL states that have sales tax, if you buy something in another state and do not pay sales tax on it there you are required by law to report that sale and pay the taxes on it. There is actually a line on your state income tax form to allow you to do this. It is NOT the vendors liability to collect or report this tax, it is encumbant on the purchaser. The fact that well over 90% do not do this is NOT the fault of the vendor.
although it may be against the law to not send to an appropriate state authority (which would it be...where you live, or where the vendor lives?) tax associated with the purchase...
Not at this time. When the laws are changed then you will see the Internet sites collecting these taxes, but not until.
I have to think that doing so (paying the government tax associated with an internet purchase to an out of state vendor) would put you in not only a significant minority, but that doing so would be so much like the people who resist pulling the tag under their chair, and (OK, let''s find better examples), at least like those ill folks who actually resist smoking marijuana for medical purposes, where the authorities have made a point to say that they would not be pursuing these activities aggressively (don''t ask, don''t tell?)...
As long as vendors fear more customers not coming to them because they don''t post this (no collection of taxes) on their sites...than they do the law coming after them for inciting illegal behavior...
Again, at this time there is no law requiring the Internet vendors to collect taxes on out of state sales. Thus we are not acting or inciting illegal behavior. The failure of the buyer to report this purchase is in fact illegal, but it is NOT our responsibility.
I''ve got to say you are possibly stupid for paying tax on these out of state purchases. The government is probably also, while looking after the collecting of taxes, also looking after the benefits of the increased commerce made possible because of the internet...and I believe their (non) actions on this speak louder than any available fine print.
This said, spoken as the ordinary citizen that I am, so help me g-d.
...this is true! I do.Date: 10/28/2009 1:54:00 AM
Author: Wink
Then you need to practice up on your imagination skills.
That would depend on what kind of merchant you were dealing with. If you are dealing with a well known and respected merchant you have full recourse just as you would with any other payment, check, etc. Granted you have more power over the merchant with a Credit Card since the CC cards tend to back the consumer no matter who is right in a dispute.Date: 10/28/2009 12:30:16 PM
Author: elle_chris
I''m still wondering what kind of protection a bank wire offers? I was under the impression that you have no recourse, and that a wire transfer is pretty much the same as cash.
Wink- Regardless of the merchant, your only real protection is with a CC. Even if the company is here today and gone tomorrow, you can fight the CC charge and usually win. Your bank however will not reimburse your account. I mentioned it because earlier in the thread, someone said that cash offers little recourse as opposed to bank wire or cc. And as far as I know, bank wires offer no recourse according to my bank (Citibank).
That is correct, so it behoves you to do business only with good people or with CC.Date: 10/28/2009 1:36:17 PM
Author: elle_chris
Wink- Regardless of the merchant, your only real protection is with a CC. Even if the company is here today and gone tomorrow, you can fight the CC charge and usually win. Your bank however will not reimburse your account. I mentioned it because earlier in the thread, someone said that cash offers little recourse as opposed to bank wire or cc. And as far as I know, bank wires offer no recourse according to my bank (Citibank).