Dear Editor:
Collecting sales tax on E-Sales has posed what appears to be an insurmountable problem. Some of the apparent impediments are:
Differing sales taxes in different geographical entities; Identification of the items which are subject to sales tax, if any; Location from which the order is placed; Location of geographical entity from which the order is delivered; And other impediments having to do with identification of the buyer.
I would suggest the following [probably requiring a federal mandate]:
Require that the E-mail buyer provide the following information:
1. a.Identifying number such as: social security, EID, driver license number; b.Telephone number and address from which the order is being placed; c.E-mail address; d.Credit (or other non-cash) card payment number; By national decree, all potential sellers to U.S. citizens would be required to provide the information shown above (foreign entities would also be required to abide by this procedure in order to be allowed to do business in the U.S.); The E-mail seller would be required to electronically distribute that information to the state (identified with the information shown in 1) above.
The taxing state (or other governmental entity) would be charged with a means by which to enforce its collection, which might consist of the following:
Notify the E-mail buyer of the tax which is required; Maintain electronic records which identify the E-mail buyer as shown above; Charge the uncollected sales tax on state income tax records and (using the social security number) provide the information to the IRS which entity can then include this uncollected sales tax as a charge against the taxpayer subject to prosecution in a court of appropriate authority; and other means having to do with identification of the person subject to tax.
Other procedures could be developed over time to maximize the collection process. Perhaps the success rate would exceed that relating to catalog sales.
Frank X. Landrigan