All cities & states are starved for tax revenue, so I wouldn't be surprised by anything. Brenda _____ From: accmemberdiscussion-bounce@xxxxxxxxxxxxx [mailto:accmemberdiscussion-bounce@xxxxxxxxxxxxx] On Behalf Of Djsdosido@xxxxxxx Sent: Wednesday, June 23, 2010 7:36 AM To: accmemberdiscussion@xxxxxxxxxxxxx Subject: [accmemberdiscussion] Breeder slapped with nonpayment of sales tax Reported on my Scottie list this morning. Just an FYI as to what could happen in the future should all breeders be forced to get kennel licenses.......... Donna & the Dosido Gang Remlap, Alabama Visit me at www.doublenickellife.blogspot.com <http://www.doublenickellife.blogspot.com/> and help support the Alabama Canine Coalition by shopping/searching through http://www.goodsearch.com <http://www.goodsearch.com/> and http://www.igive.com <http://www.igive.com/> Every year of dog love is worth seven years of the human stuff. (Michael Rosen) Please pass this information along to whomever you know that is not yet a member of IFDCO (Illinois Federation of Dog Clubs and Owners) so that they will be informed of this action on the part of our state. I never thought I would live so long to see "armed" escorts needed for dog breeders! Even those breeders who do not need to be licensed need to have meticulous records available in case of an investigation. I also question about the sales tax license being for "general merchandise" . If anyone has a CPA or tax attorney who can decipher the IL sales tax code please let me know. IFDCO asked three different CPA's about this when it first surfaced a few months ago and received three different answers. The only common advice for breeders was to keep good records. While this is news for Illinois, those of you in other states need to be prepared as well, it's only a matter of time before this kind of activity hits your state. Makes me feel all warm and fuzzy that our revenue departments and criminal investigation units have so much extra time on their hands they can afford to drive to every dog breeder to "investigate" and collect sales tax. Craft fairs, garage sales and lemonade stands will be next for an armed visit. Michele Kasten ILLINOIS FEDERATION OF DOG CLUBS AND OWNERSLegislative Liaison: >Belle City Kennel Club Schipperke Club of America Illiana Schipperke Club Schipperke Club of Greater St. Louis GSD Club of Southern Illinois Midwest Schipperke Rescue Schipperke Club of Greater St. Louis, President and Rescue Chair President and Co-Founder, Midwest Schipperke Rescue RESPONSIBLE BREEDER AND RESCUER, PROUD TO DO BOTH! Permission to cross post: Attention: It has happened here in Illinois. A Senior Investigator and her armed escort from the Illinois Department of Revenue Bureau of Criminal Investigations has shown up on the door steps of a person who holds a Kennel License in Illinois demanding to see their dog sales records and accusing them of criminal wrongdoing. The investigator knew exactly how many dogs this person had sold in the past 36 months. What they didn't know is that most of the dogs sold by this individual were sold to out of state clients, so no sales tax needed be collected on over 75% of their dog sales. This is not a puppy mill operation. This is a breeder of over 30 years who has quality dogs, shows dogs, and has a boarding kennel. They are just like you or I. The Investigator forced this individual to show up in Springfield, obtain a sales tax license for the sale of general merchandise and then proceeded to go thru their records from the Department of Agriculture for the past 3 years. By the end of the day, they had to pay all back sales taxes, fines and interest on their fines. >We had heard last year that the Illinois Department of Revenue had requested a list of all individuals who were licensed as dog breeders in the state from the Department of Agriculture - I guess it is true. This person was made an example. They were told that they were being made an example and others would soon follow. >A person at the Department of Revenue told this individual that they had been instructed to bleed anyone to get money as the state is so broke. >What can you do? If someone knocks on your door and shows you a business card or a badge, have them wait outside and you should call your accountant and or your lawyer. Don't do anything without legal representation. Think about only selling your dogs out of state - so that no sales tax needs to be collected. Once they knock on your door, the statue of limitations is 3 years that they can request your records. Steve Hayden President, IFDCO