Taxable Supplies???

Wendy Moss

Is there a list of taxable supplies vrs material provided by the flooring industry?
tax audit trying to show that grout, metal, cove base, and other "material" used for flooring installation (that is chosen and signed for by a customer) is "supplies needed for installation and should be taxed wholesale and not retail. IRS wishes for store to pay back tax on these "supplies" on top of tax already collected and paid from the consumer when we sold it as "material". Any help?

Bud Cline

Consult with your personal/business tax professional.

Floordude

Did you show a tax I.D.# at time of purchase, and no sales tax was paid by you??

If so, you need the paper trail of where those supplies were used and the tax you paid in for the sales tax on the job.

If you paid sale tax at the time you purchased it, it will show on your receipt.

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MattCoops

I strongly suggest you contact a local CPA

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Matt with Cupan Custom Tile & Paint of Lowell, Massachusetts
Design and installation of ceramic tile and natural stone for floor, wall, and countertops
(978) 601-8774 | cupantile@gmail.com | view tile pictures and more