Monday, August 22, 2016

Want a tax number? Take a number

A company tax number is what allows you to buy goods for your business and claim the sales tax back from the government. No tax number? Then you have to pay the sales tax of 20% like any end consumer, even if you are buying inventory to resell.

20%


Good news for Washingtonians! According to this website, at 8.9% you are taxed less than 90% of the other states :)
I applied for my sales tax number six and a half weeks ago on July 6th.
I still do not have a tax number.

I'm guessing that's why they allow people 6 months to start their businesses, because 90% of the time is just waiting for stuff to happen while you golf.

Remember how I mentioned in my last post that my business start is September 1?
Yea, that's approximately 8 days away and I still can't buy inventory or cardboard boxes to put it in.

When I handed in my tax number request forms to the IRS, I was told "Eine Erhebungsdienst wird sich bei Ihnen melden.". This means I will be contacted by the inquiry dept to ensure that I really am planning on starting a business, because they will not hand out those tax number to just anybody.

After they decide you mean business (see what I did there? ;)), it takes another 3-5 days for them to actually issue you the tax number.

After a month had gone by, I went back to the IRS and asked where my number was. I received the standard answer that the inquiry dept. will come by. When asked how long that takes, I was told they didn't know, but that they'd write an e-mail.

Now at 6 weeks, I had to take action. I can't afford to pay 20% too much for my inventory. After being shrugged off last time I asked for info in person at the IRS. I decided to embark on the Telephone Campaign of Terror.

After being transferred around several times to get to correct department, the fun ensues :)
Here's the short version:

ME: When does my tax number arrive?
Them: I don't see anything for you yet.

ME: It's been 6 weeks. How long does it normally take?
Them: It depends.
(I can totally play this game...)

ME: On what?
Them:  Well some people are on vacation...
(I can hear her getting agitated)

ME: Please check when I am scheduled.
Them: I think they are currently working on requests started in May/June.
(Notice all the non-committal answers you get?)

ME: Fine, but when am I scheduled?
Them: I don't know. The person is normally out of the office on inquiry visits.
ME: Well then can you transfer me to their supervisor or someone who can check the schedule?
(oops, now I can hear she's pissed, lol)

Them: I can give you their extension...
ME: If they are out of the office, I'm guessing the phone extension probably won't help me. Please give me their name and e-mail address.


My phone call must have made the rounds inside the dept., because when I called the guy's extension, he already knew who was calling, haha!

Since squeaky wheels apparently get all the grease, I got an appointment for the next day. He said he would forward my documents and that I should expect my tax number by mail the middle of next week.

I'm praying that this really turns out to be the case, but the guy at least offered to call me and let me know the tax number over the phone if he sees it first.

After relating my phone story to some friends, one of them said:

"It's all just a test, if you don't have enough persistence to get information out of people who don't want to give it to you, then you're probably not going to be a successful business owner."

Wise words indeed!
 
And here's a dilbert
 

 

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