If we're talking about a reseller here, then we're definitely looking at a margin scheme tax situation. The only real headache left is how they handle the note on the invoice; since the seller is operating out of a different DC, they’re just going to write that disclaimer however their specific local tax laws dictate.
The way I see it, your vendor is probably using some kind of special margin scheme for their taxes—it looks like they’re following those specific VAT regulations regarding profit margins.
Look, I haven't actually dealt with a situation quite like this in my own work, so I haven't gone down the rabbit hole of studying the fine print, but that's my gut feeling on how it's playing out.
Betty King7, I totally lost my train of thought following your story 😁 Is the vehicle brand new or used? And did someone already handle the VAT regulations on it? Maybe my brain is just turning to mush because I'm starving—I haven't had a single bite to eat since this morning 😁
The IRS just went and shuffled all their VAT reporting codes again because they're obsessed with running extra audits. 🤔It’s just more red tape for the sake of red tape. You better get a developer on the phone to patch your software immediately, because if you don't, that filing isn't going anywhere.
What specific income are you even talking about transferring to someone else? I mean, maybe one of those payments an employer is legally required to report on their JOPPD form to the IRS? Do you honestly think any payer is going to risk their neck by filing a fraudulent report with the IRS just so you can dodge what you owe Diners Club? No way in hell!
There’s actually an entire thread over in the business section about the JOPPD form if you want to go snoop around. It covers all those payments where reports are sent to the IRS for literally every single cent paid out. ☕
The JOPPD form is a brand new thing as of the start of this year. What the IRS is actually going to do with all that data they collect for 2014 once we hit 2015... well, that's anyone's guess. But hey, feel free to give it a shot. Just let me know how it works out for you.
Christian Mendoza60 said:What if I just reroute my pay to a different account?
I don't have anything left in my own name, so I could just deposit whatever I want into my own account every month and let them take what they want from there. Is that actually doable?
If the levy goes through the IRS, they’re coming for every single cent in every damn bank account you have. Switching to a different account isn't going to save you anything. And yeah, you can technically trickle small amounts into a frozen account, but they'll just grab it. Just remember—the shorter the repayment term, the less interest you'll be bleeding. Drag it out too long, and those interest rates will eat you alive.
Christian Mendoza60 said:Fine, my bad. I get it. But now, I actually need some help here.
First off, if they've actually started the garnishment process, you clearly ignored every single warning from Diners Club. And I don't just mean those scary letters labeled "Final Notice"—I mean every single notification they threw at you, regardless of what they called it.
You should've stepped up sooner, called Diners Club, and worked out a payment plan. Even paying a tiny bit here and there shows them you aren't just running away from the debt.
Since you didn't, they're probably going to push through the garnishment now; my guess is they'll go through the IRS to freeze all your liquid assets. Your best bet is to open a protected account if your income qualifies, then slowly chip away at the debt plus interest, notary fees, and whatever the IRS slapped on top.
There's plenty of info on protected accounts scattered across this thread and the finance boards, so go do some reading.
At this legal seminar I attended, some county judge told us something completely different about foreclosures, but honestly, who cares right now? Your buddy really dug himself into a hole with all those loans, and now that the collectors are breathing down his neck, he’s on his own. He signed the paperwork, plain and simple. It's his mess to clean up. Maybe next time he'll actually use his head.
Benjamin Taylor6 said:Look, if a company has been liquidated, your only move left is a private lawsuit against the former owners or the management board. But there's a catch—you need SERIOUS EVIDENCE that the firm was funneling money directly into their own private pockets or somewhere similar. And let me tell you, proving that is a total nightmare. Especially here in the USA.
A friend of mine—who basically lives paycheck to paycheck because his entire salary goes toward loan payments—wanted to set up a protected account. His wife just lost her job, and he’s struggling to keep up with all the credit obligations. The folks over at the IRS told him he couldn't even open that kind of account without official paperwork regarding a foreclosure or seizure!!?? It sounds completely backwards to me—as if he's supposed to default on a loan first, wait for the bank to sue him and trigger a legal seizure, and *only then* can he head down to the IRS?!!! That logic is just... well, it's nonsensical, isn't it?
Look, a buddy of mine is in a real bind right now—his entire paycheck is basically being swallowed by loan payments. It’s brutal. But, thank God for the laws we have, because they can't actually seize his whole check; legally, they can only garnish up to one-third of it. The rest has to go straight into a protected account. From there, he manages what's left to cover any other debts he's juggling. It's a tightrope walk, honestly. Look, when those loan payments get snatched straight out of a paycheck based on some official paperwork, that’s basically a wage garnishment. Plain and simple. So, your buddy actually has every right to set up a protected account. He just needs to head down to the IRS, show them the actual documents they're using to garnish his wages, and demand it. Once he proves that's what's happening, they should be opening that protected account for him without any more hassle.
Steven Jackson90 said:We'll see how it plays out. The transfer was sent today, but nothing has landed yet. What happens next? Does the money just bounce back to them so he can try again with a different account? Honestly, this whole mess isn't even my problem—it's for a buddy of mine. He was working over in Italy and needs his paycheck. These idiots went and sent everything to the wrong account. It’s a protected account, sure, but they take a third right off the top. They were supposed to send $1000 to that one and the rest to an Austrian account... instead, those morons dumped everything into this single account. Naturally, he's looking at losing over $750 for absolutely no reason.
The only people allowed to deposit into a protected account are the specific entities your friend listed as authorized payers when he first set up the account. That’s literally why it’s called a protected account. Any other deposits from anyone else (meaning anyone he didn't explicitly authorize) won't actually land in that protected account.
They’ve got two-thirds of their paycheck tucked away in a protected account, along with any other legally shielded income they might be pulling in. That money is off-limits. Everything else just hits their standard checking account, and then the IRS or whatever collection agency is breathing down their neck just grabs it as soon as it lands. Basically, once the first creditor gets paid, the next one in line swoops in immediately. Look, they all signed on the dotted line when they were taking out those loans. They handed over notarized authorization forms to the banks—basically giving them the green light to seize funds—and that makes it an official legal instrument. They knew exactly what kind of mess they were signing up for.
Carol Price4 said:Nicole Lee6—wait, I’m still a bit lost on that part—who actually sent you those bills back after four months?
As far as I can tell, it's crystal clear—it just falls under the tax liability transfer law, Article 17, Section 1...
That’s my take on it too.
Nicole Lee6, don't waste your breath digging through trade magazines; just call a VAT specialist at the IRS. Since everything is happening within the same fiscal year (the same tax period), I doubt there'll be any headache if you need to void an invoice or fix things later. But seriously, run it by the tax authorities first. At the end of the day, they’re the ones auditing your VAT, ZP, and income tax for the year anyway. You wouldn't believe the "official opinions" these bureaucrats hold onto—stuff they never bother to publish anywhere, leaving us totally in the dark.
If your tax advisor is half as good as mine, 🙏 she'll probably just email you her formal opinion so everything is black and white.
Look, if you’re convinced you don't owe them a dime, then dispute it. If they come knocking with a garnishment order, file an appeal... or just pay the damn small change you owe and get some peace of mind. It's your call. Don't make your own life harder than it needs to be.
The lady handling my paperwork told me they pretty much have a handle on the situation already. Apparently, they’ve already figured out which specific countries are causing the most headaches. 😁 Honestly, I caught on to the same pattern just by looking at the documents she had me scan. 😁 We don't deal with this stuff very often, and it's not even a monthly thing, so... you don't exactly need a PhD to see what's going on. She gave me a call a few days later to let me know everything was cleared and good to go, so I didn't bother following up.
Nicole Wells38 said:Hey everyone, we’re currently undergoing an audit for the 2013 fiscal year. Basically, we have to reconcile everything, submit documentation, and explain any discrepancies or inconsistencies found in our sales tax filings—whether we over-reported or if our suppliers from within the USA reported less than we did, or didn't report anything at all. So, I'm sitting here scanning these invoices and a question popped into my head: when you're purchasing goods from a US supplier under a reverse charge setup, is it possible to categorize that small shipping fee (say, $50) as a service acquisition rather than part of the goods acquisition? In the past, I’ve always just lumped the entire total into the cost of goods. Any thoughts?
Don't sweat it. I totally pulled this one back in August 2013. I logged an entire service invoice as a purchase of goods. I didn't even realize my mistake until they came knocking, asking for scanned copies of specific periods 😁 and honestly? No big deal. The auditor just told me to file a corrected sales tax form and we were done. (It was just some tiny amount, maybe around $67).
The real headache for them isn't even the math; it's that we're being such perfectionists about reporting every single acquisition while the other side is barely keeping track.😁
John Clark6 hit the nail on the head. The guy actually knows his stuff. But look, let’s quit dancing around it and get down to brass tacks. Let's just look at what the US Code says:
One-year statute of limitations Section 232. (1) The following claims expire after one year: 1) Claims for compensation regarding delivered electricity, heating, gas, water, chimney sweeping services, or sanitation services, provided the delivery or service was performed for residential purposes. 2) Claims from radio and television stations for the use of radio and television receivers. 3) Claims for postal, telegraph, or telephone services—including phone usage, PO boxes, and other related charges billed on a three-month or shorter cycle. 4) Subscription claims for periodic publications, calculated from the end of the period for which the publication was ordered. (2) The statute of limitations runs even if the deliveries or services have been extended.
Everything was lagging out on me around 2:00 PM while I was trying to push through those payroll tax filings and sales tax forms. The forms actually went through eventually, but I was stuck staring at my screen waiting about half an hour just to get the confirmation receipt.
And get a load of this part: "I met with all 28 ambassadors and gave them the full rundown. We’ll have the funds returned ASAP, and within the month, we're going to overhaul the law to streamline the whole system..."
Great. Another round of shifting tax codes and endless bureaucracy. Just what we needed. Huzzah! 😵🙂🙂 Seriously, when does this nonsense ever end?