ARTICLE SUMMARY

Name

Course

Professor

Article Summary

An article from the Los Angeles Times talks about how California and its local government has been issuing letters telling companies to check for some of their out-of-state purchases or they may possibly find themselves facing an audit

According to the article , for the last six months , the tax officials in California have been discretely sending mails to business people such as doctors , and other service providers , asking these businesses to check their records on the possibility of them having made out-of-state purchases

since 2005 and asking them to pay back any taxes that they owe the government . This is due to the use tax ' that the state government warrants for consumers who purchase their goods out of California . This tax is paid every time consumers buys something in another state and if the vendor does not receive any sales tax regarding the said purchase the amount that is to be paid fall to the range of about 7 .25 to 9 .25 and is subject to the place of residency of the consumer

The move is a projected necessity , seeing that the state might run into big trouble - about 41-billion worth of budget gap for the next year and-a-half according to state officials . One problem leading to the difficulty in collecting these taxes is that most of the businesses and individuals who make out-of-state purchases are either unaware , or are deliberately ignoring the said law

Another difficulty discussed in the articles is that there...