A taxing situation

[+ purplekow]

I was just reviewing a bill from my landscaper and found that he had not credited $500 I had submitted and that on his bill, he had a sum for tax that was equal to 7% not of just the new services, which is appropriate, but a tax on the total bill. Since the $500 was not credited, i am being billed 7% additional tax.

I understand the landscaper is entitled to the tax on new services, but a review of my bills indicate he has been taxing old balances for several years. The excess tax for this one bill alone is $100.

I want to confront the landscaper and have him correct my bill. Others have suggested i contact the state, as this may be a

form of tax fraud.

Any thoughts?

[citylaw1]

I was just reviewing a bill from my landscaper and found that he had not credited $500 I had submitted and that on his bill, he had a sum for tax that was equal to 7% not of just the new services, which is appropriate, but a tax on the total bill. Since the $500 was not credited, i am being billed 7% additional tax.

I understand the landscaper is entitled to the tax on new services, but a review of my bills indicate he has been taxing old balances for several years. The excess tax for this one bill alone is $100.

I want to confront the landscaper and have him correct my bill. Others have suggested i contact the state, as this may be a

form of tax fraud.

Any thoughts?

 

When he credits the $500 the tax will adjust. The service provider simply acts as a tax collector for the state. He is not "entitled" to anything; on the contrary, he is saddled with the responsibility of tax collector for no extra compensation.

[+ purplekow]

This is a Mom and Pop Landscaper. Each month he sends a bill and the tax charged is not only for the services for that month, which would amount to $2.80 per lawn cut, or about $20.00 per month, but for that $20 and then 7% tax on the outstanding balance which has been taxed previously. So that my tax for this month was $101 instead of $20. The fact that he did not post the $500, a partial payment, is what lead to my looking more closely at the bill. i will watch for the posting of the $500 but he is definitely sending a tax billings for a single service and then repeating that tax every month the bill is not paid.

By entitled to the charge the tax, I was faulty in saying he was entitled, when in fact he is obligated to collect it and then forward it to the state. That collection should be once on any particular sale however.

[MsGuy]

Dig through your records for as far back as you can and calculate your true bill. Reduce your work to a clear worksheet, sit down with your lawn service guy and settle the matter if possible (be sure to have his acceptance of an agreed balance in writing before paying him). If not possible, tell him to stuff it and get yourself a new landscaper.

 

Either way, at this point you have a decision to make: are you dealing with an idiot or a crook? If an idiot, suggest he correct how he calculates sales tax before the State Tax boys come down on him like a ton of bricks. If a crook, drop a dime on him with said State Tax folks.

[gallahadesquire]

Dig through your records for as far back as you can and calculate your true bill. Reduce your work to a clear worksheet, sit down with your lawn service guy and settle the matter if possible (be sure to have his acceptance of an agreed balance in writing before paying him). If not possible, tell him to stuff it and get yourself a new landscaper.

 

Either way, at this point you have a decision to make: are you dealing with an idiot or a crook? If an idiot, suggest he correct how he calculates sales tax before the State Tax boys come down on him like a ton of bricks. If a crook, drop a dime on him with said State Tax folks.

 

I feel sorry for the poor sod, but: Time to get a lawyer? And why does he have to pay taxes on the service-when-provided versus his income tax? America: Ya gotta love it.

[Irtwo]

$2.80 per lawn? Are these ultra small lawns that are part of a larger complsx or something?

 

By the way, if you're going to post about your landscaper, at least post a pic so we can fantasize about how you might "work out" the payment issue with him.

 

http://3.bp.blogspot.com/-TkohQ6H2I2o/TwpjqR1v3-I/AAAAAAAAGms/UKue9Zvxj3E/s1600/hunk+gardener.jpg

[+ purplekow]

$2.80 per lawn? Are these ultra small lawns that are part of a larger complsx or something?

 

By the way, if you're going to post about your landscaper, at least post a pic so we can fantasize about how you might "work out" the payment issue with him.

 

http://3.bp.blogspot.com/-TkohQ6H2I2o/TwpjqR1v3-I/AAAAAAAAGms/UKue9Zvxj3E/s1600/hunk+gardener.jpg

 

I quoted this for two reasons #1 The picture and #2 The picture The $2.80 is the tax on the lawn cutting. $45 or so per lawn cut. My house is on about 3/4 acre. They use sitting mower and are done in about 7 to 10 minutes.

[MiamiLooker]

This is a Mom and Pop Landscaper. Each month he sends a bill and the tax charged is not only for the services for that month, which would amount to $2.80 per lawn cut, or about $20.00 per month...

 

You get your lawn cut about 7 times/month?

[+ purplekow]

You get your lawn cut about 7 times/month?

Front lawn cut once a week, back lawn twice a month. So about 7 cuts a month. is that a lot?

[geoffk]

If you truly believe you are being overcharged you need to discuss this directly with the person who is doing the billing, either the owner or his wife or whoever.

Without seeing the actual bills or statements it is hard to tell on here what is actually happening. I assume the landscaper has some type of accounting software he is

using. Perhaps this software tracks the total amount of services and the tax obligation separately to keep track of the amount owed to the state. You made a $500 payment, did this apply to one whole bill or was it a payment on account. Find out why it wasn't applied to your account. Perhaps it didn't apply in total to a specific bill and they didn't know how to apply it partially in the system. Work this out with the landscaper, you keep on using him so you must like his work and he must value your business. The last people you want involved is the state and attorneys, and why would you involve them for a business matter that you should be able to resolve on your own.

[Diverdan]

I would pull all of your old records together and consult the person who does your taxes. Usually taxes on services are not charged to the individual receiving the service, ala a barber, attorney, tax accountant, etc. If you don't have someone knowledgable about taxes in your state, then consult with your attorney. This sounds like a scam to me. I have never paid taxes to my lawn service, or any other service provider except for the goods and materials that might have been used in the process.

[robberbaron4u]

Dear Mr. Landscaper: You professional services are no longer required by me as I am going with gravel and concrete with accents of asphalt as a ground cover. Very truly yours, ______________________.

[gallahadesquire]

Hire a law firm: Bark, Mulch, and Loam. THey're right downstairs from Dewey, Chetham and Howe.

[Irtwo]

Diverdan, it depends on the state. I believe OP is in New Jersey, where gardeners are supposed to charge tax on their services (but not on materials: seeds, plants, etc., if separately invoiced, in case the landscaper is doing that as well).

[geoffk]

this information is all online with the state you are dealing with, you don't need an attorney to charge you money to figure out what you can do on your own. as to not overpaying, since you are paying you are the one in control. use your power. get the answer from your vendor that you want.