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  1. #1
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    Letter fron NC Dept of Rev
    Today I received a letter from the NC Dept. of revenue requesting information on my relationship with Amazon.....specifically their affiliate program. They gave a list of 25 questions to answer.

    I have 30 days to reply or receive a summons to personally appear at the Revenue Office for face to face questioning. They assure me that this is not an audit of my books.

    Did anyone else in NC get this letter?
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  2. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Sorry to see this. It's likely just a fishing expedition.

    Have you posted this on the Amazon Associates Discussion Board or looked through there to see if others have posted about it?
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  3. #3
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    Quote Originally Posted by AffiliateHound View Post
    Sorry to see this. It's likely just a fishing expedition.

    Have you posted this on the Amazon Associates Discussion Board or looked through there to see if others have posted about it?
    Did not know that such a thing existed.

    I know that it is a fishing expedition....and I am the bait.

    Thanks
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  4. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    I think you should not answer it but gather your records and be happy to appear face-to-face. Wish I were in NC as I would go with you.

    Am curious, how do they know you are an affiliate and work with Amazon?

  5. #5
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    Quote Originally Posted by Chuck Hamrick View Post
    I think you should not answer it but gather your records and be happy to appear face-to-face. Wish I were in NC as I would go with you.

    Am curious, how do they know you are an affiliate and work with Amazon?
    Amazon must have given that information. I do not have any records concerning Amazon. I was a member of the program years ago, but never really promoted it. Haven't had anything on any sites concerning Amazon for 6 or 7 years.
    Last edited by Witzer; May 24th, 2012 at 12:32 AM.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  6. #6
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    Quote Originally Posted by AffiliateHound View Post
    Have you posted this on the Amazon Associates Discussion Board or looked through there to see if others have posted about it?
    Seems that one is not permitted unless one has an Associates ID.......I do not.........My account was canceled because I live in NC
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  7. #7
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    I looked through the last few days of posts and saw nothing about this. I was going to post the question if anyone else had received a similar letter, but then it dawned on me, anyone else getting one would have also been booted from Amazon for the same reason and also could not post. So the AA discussion board is worthless for this.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  8. #8
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    Quote Originally Posted by AffiliateHound View Post
    So the AA discussion board is worthless for this.


    This pissed me off. Got 30 days. Need to forget it tonight and get some sleep. I just don't trust these people.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  9. #9
    OPM and Moderator Chuck Hamrick's Avatar
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    Let us know what you decide.

  10. #10
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    Since you haven't had Amazon links for years, they are probably not interested in you. They are probably looking for people who earned commissions during the period covered by the law, so that they can go back and demand payment from Amazon. If you were last active 6 or 7 years ago, surely that pre-dated the period covered by the law. If I were you, I would answer the questions and be done with it.

    Also, they don't close your account; they just mark it as non-commissionable. You can still login, look at historical reports, and access the discussion forum (actually, you can access the forum without logging on to the Associate Program at all). We see posts from people in states that are no longer eligible for the program all the time (mostly asking whether anything has changed, or talking about alternatives).
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    Valerie Magee
    [URL=http://mageenet.net]MageeNET[/URL]

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  12. #11
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    Is this Letter from NC Dept of Revenue Legit?
    I received this letter too! What a pain if I have to answer all those questions!! My situation is the same as some of the others when I moved here to NC they canceled my affiliate status!

    Will you be completing the questions and sending them back and is this really from the NC Dept of Revenue??


    Quote Originally Posted by Witzer View Post
    Today I received a letter from the NC Dept. of revenue requesting information on my relationship with Amazon.....specifically their affiliate program. They gave a list of 25 questions to answer.

    I have 30 days to reply or receive a summons to personally appear at the Revenue Office for face to face questioning. They assure me that this is not an audit of my books.

    Did anyone else in NC get this letter?

  13. #12
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    Quote Originally Posted by Snowbird32 View Post
    I received this letter too! What a pain if I have to answer all those questions!! My situation is the same as some of the others when I moved here to NC they canceled my affiliate status!

    Will you be completing the questions and sending them back and is this really from the NC Dept of Revenue??
    Sorry about this.....But...Thank goodness that I am not the only one.

    I will answer their questions and I am considering asking for a face to face meeting and hand carry my responses. This is the NC Dept of Revenue.

    Most of the questions are concerning A-Store. I never signed up for A-Store.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  14. #13
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    Snowbird32........Since you are new, I can't PM you......So I start here.


    Did you file a NC tax return for the year 2011? I am looking for a common thread as to how we got on their hit list. My guess is that some one is flagging returns for further follow-up that show affiliate income. They are grasping at straws and we get caught in the middle.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  15. #14
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Witzer View Post
    Did you file a NC tax return for the year 2011? I am looking for a common thread as to how we got on their hit list.
    And do you report your income as a company (EIN) or individual (SSN)?
    Salty kisses, Sandy toes, and a Pirate's heart...

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  17. #15
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    Yes but it did not include any Amazon Affiliate at all ....since there is none! Are you completing the questionnaire? It's been so long I'm not even sure I can do a great job answering them all either...most are open ended questions that require a lot of work!

    Quote Originally Posted by Witzer View Post
    Snowbird32........Since you are new, I can't PM you......So I start here.


    Did you file a NC tax return for the year 2011? I am looking for a common thread as to how we got on their hit list. My guess is that some one is flagging returns for further follow-up that show affiliate income. They are grasping at straws and we get caught in the middle.

  18. #16
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    Then SSN now EIN

    Quote Originally Posted by Convergence View Post
    And do you report your income as a company (EIN) or individual (SSN)?

  19. #17
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    Mine is and has always been EIN......NC based corp. The letter was addressed to my company.

    If you answer their questions....My advice is to answer to the best of your ability....No need for a great disertation.

    Do you have an e-commerce store? I do and the income was listed on my tax return.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  20. #18
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    Yes I have an e-commerce and I pay sales tax & use quarterly too! This just seems like a big waste of my time!! I will do my best though to avoid any further contact from them...

    Quote Originally Posted by Witzer View Post
    Mine is and has always been EIN......NC based corp. The letter was addressed to my company.

    If you answer their questions....My advice is to answer to the best of your ability.

    Do you have an e-commerce store? I do and the income was listed on my tax return.

  21. #19
    Advocate mellie's Avatar
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    Pretty much a standard part of a revenue department's investigation into a company's sales tax collection. Not targeting affiliates but making sure a company (ie Amazon) is collecting if they are required. You are simply part of the investigation.

    (I know thread a little old but just saw pm's regarding this.)

    (Hopefully you have reported all income because one investigation can lead to another. An investigation/audit of one company sometimes identifies others to investigate. Happens with companies, individuals and "partner states".)
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
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  22. #20
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    I did answer the letter. I do file all tax forms in a timely fashion. I do pay taxes as required.

    This letter was specifically aimed at Amazon relationships, They assured me that I was not being audited.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  23. #21
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    I'm not in NC, but am considering moving there. Currently, I am in a more online business friendly state, but where I live, an Amazon Tax legislation was proposed and failed.

    I'm curious if a way around the whole Amazon Tax would be to simply set up your business in another state, like Delaware or Nevada or any other state that doesn't have an affiliate tax. The questions would be to whether it needs to be an S Corp as opposed to a LLC.

    As the business would technically be the affiliate in the Amazon Tax-Free state and you would just be the owner of the company, then you would only be responsible for your personal income and not tax collection related to online sales.

    I'm NOT an accountant so maybe someone else in this forum may have better info on this, but hopefully this would be a good work-around for those living in Amazon-Tax states to be able to get back into business.

  24. #22
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Bartleby View Post
    I'm curious if a way around the whole Amazon Tax would be to simply set up your business in another state, like Delaware or Nevada or any other state that doesn't have an affiliate tax. The questions would be to whether it needs to be an S Corp as opposed to a LLC.
    Where you hang your hat is where you are doing business, regardless if your business is registered in another state. Basically, if you work in a State that has a nexus sales tax, you've created a nexus in that State.

    It's also fraud. If the merchant gets in trouble by a State because you "tricked" them, the crap will roll downhill...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  26. #23
    Tax Paying Member
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    Quote Originally Posted by Bartleby View Post
    The questions would be to whether it needs to be an S Corp as opposed to a LLC.
    Your type of organization does not matter.......It is where "home" is that counts.

    If and when you move to NC you become subject to the laws of NC. You can have business interests in other states, but NC becomes your primary "tax filing" state.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

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  28. #24
    OPM and Moderator Chuck Hamrick's Avatar
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    The only reason to create a corporation in Delaware is to hide your identity. In doing that you can hide from corporate and possible personal income tax, until caught.

  29. #25
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    Witzer, you would be responsible for your income tax in your state, yes.
    However, if your business entity is in a state which does not have a nexus law, then the affiliate transaction does not take place in the state in which you live. The transaction is with your business entity in another state, and not you personally.
    I'm just making a suggestion in which you may consider investigating. It would NOT hurt to consult with a CPA in North Carolina to find out if this would work or not.

    Chuck, the only reason I mentioned Delaware is because it's not far from North Carolina physically and it's known for quick an easy incorporation, not because you can hide your identity.

    A lot of negativity in this forum. Glad I only visit once every few months.

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