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Old 06-16-2012, 12:14 AM
Italysfinest327 Italysfinest327 is offline
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Join Date: May 2004
Location: NY
Posts: 30
Refusal to fill out capital improvement form

Hi all,
I just finished up a patio and walkway for a customer in NY. I estimated the job along with the sales tax in the price. Customer came back to me and said for this type of work there was no need for sales tax, which i agreed as long as the st-124 form was given to me. Long story short, i continued and finished the job, received payments, but never received the capital improvement form. When i mentioned to the homeowner i need the form or else i have to pay the taxes on his payments, he refused to provide it to me. Has anyone ever had this happen to them. Whats the best route to go with this situation. Clearly i don't want to pay $800 and change in taxes on something i should not have to pay. Can i report this to the state and make it their problem?
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Old 06-16-2012, 01:23 PM
zimmatic zimmatic is offline
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Join Date: Dec 2007
Location: Minnesota
Posts: 408
Send him an invoice for the outstanding balance list charges and payments and include the sales tax. Send it collections or this is what I did

I had a client that is a national entity I did work for at 30 plus locations. They had 2 contracts. One was from their national office and another for each location. I listed that sales tax was not included and would be charged when work was completed when submitting contracts for each location. Well when the invoices came they said that they were not going to pay sales tax since the national contract trumped the regional/per site contracts. So I left the balances open in QB. Then the state came to me one day and audited me for sales tax. "I-got a refund" however this client was paid a visit because the state asked my why all these balances where open and I told them they didn’t want to pay sales tax--- The state got their money "guessing" because not long after my audit I get a frantic phone call and emails from this past client wanting copies of invoices. They were screwed!!! Its karma imo
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Old 06-16-2012, 01:50 PM
Duekster Duekster is offline
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Join Date: Jan 2007
Location: DFW, TX
Posts: 7,969
contact the sales tax office, you tried to collect the tax right?

Err, I would send a demand letter certified mail asking for one or the other.

The second demand letter copy the enforcement agencies.
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Old 06-17-2012, 02:27 PM
Italysfinest327 Italysfinest327 is offline
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Join Date: May 2004
Location: NY
Posts: 30
I contacted the states tax office and explained the situation. they requested i bill him for the sales tax if he does not want to fill out the form. Im sending him a certified mailed, with signature receipt bill with the balance. If he doesnt pay my accountant will credit me next quarters taxes, and i will have proof of work, invoices, etc.. to cover my ass. Then its up to the state if they wish to contact this customer.
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Old 06-17-2012, 02:37 PM
easy-lift guy's Avatar
easy-lift guy easy-lift guy is online now
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Join Date: Aug 2011
Location: Venice, FL. USA
Posts: 3,334
I believe your accountant has come up with a good plan of action. Let the forums know how you made out with this case.
easy-lift guy
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Old 06-17-2012, 05:16 PM
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4 seasons lawn&land 4 seasons lawn&land is offline
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Join Date: Jan 2008
Location: NY
Posts: 3,529
You need to bill him for the balance. If he doesnt pay it then its a small claims matter. Especially since you quoted him with s/t in the price! The state doesnt require you to have a cap improvement form just so you know. The difference is, if you are audited and they decide you are wrong and the labor WAS taxable then you are liable for the s/t due. With the form the customer assumes liability if s/t is due.
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