Question Ohio says I'm a consultant not a service? - Virtual Assistant Forums

#1 (**permalink**) 12-06-2008

I received a tax deliquency form for my service business that listed a crazy huge amount of money that "proposed" I had made during the year. I called the Ohio gov/IRS and the woman asked me to describe exactly what I did for my business. I told her I was a secretary that works from home. She said that Ohio doesn't see my VA business as a "service" but as a consultant and consultants don't pay taxes.
I asked her to give me an example of a service business and she said that Ohio service businesses are plumbers, land scaping, any type of business that goes from building to building to serve their clients.

So, what am I?? What do I file? I'm so confused and really need some help and clarification. I can't ask the right questions because I don't know what to ask.

Thank you!

#2 (**permalink**) 12-07-2008

My best advice is to consult an accountant or other professional. They can at least point you in the right direction and get you the determination you need.

My favorite question to ask my account is "what did I miss, or what didn't I ask that I should have". WE both get a chuckle out of it and I usually find out some great tidbit that I hadn't thought of.

#3 (**permalink**) 12-07-2008

I agree w/ Kathy, you should consult an accountant. I'm assuming you are talking about sales tax, because no matter what your occupation is you will still owe federal and state income tax (if your State has an income tax). Depending on your occupation you may or may not have to pay sales tax. The IRS does not handle sales tax, that is set by your local government, usually the Dept of Revenue or Tax Commission (the name will vary by State).

#4 (**permalink**) 12-07-2008

Hi Kathy and Rebecka! Thank you both so much for your help. I will now go look for an accountant, do you ladies have use local accountants or virtual?

Thank you! Steph

#5 (**permalink**) 12-07-2008

Our accoutant is local. Most of my clients also have accountants that are local to their business or community, their sphere of influence. Only one uses an accountant that is 'virtual'.

#6 (**permalink**) 12-07-2008

Thank you Kathy. I will be looking locally.

Have a great day,
Steph

#7 (**permalink**) 12-08-2008

Originally Posted by marketingv

I asked her to give me an example of a service business and she said that Ohio service businesses are plumbers, land scaping, any type of business that goes from building to building to serve their clients.

(peanut gallery here) Ohio needs to come into the 21st century. I'd be lobbying this one.

#8 (**permalink**) 12-09-2008

I agree with the others. It is best to contact your accountant.

#9 (**permalink**) 12-09-2008

Ok this is what I found after searching forever (at least that's what it felt like) http://tax.ohio.gov/faqs/Sales/sales.stm#11
then I scrolled 3/4 way down and found this statement:

"Automatic data processing, computer services, or electronic information services provided for use in a business. Electronic information services include, but are not limited to, Internet access charges and e-mail service charges for use in a business"

Does the above statement sound like a Virtual Assistant?

Thank you so much for all of your help. I'm still going to find a local accountant.

Thanks! Steph

#10 (**permalink**) 12-09-2008

First of all, are you discussing collection and payment of Sales Tax?

Are you an internet service provider? How about a phone compay? Do you service computers, create and sell software?

Check out Question # 14: 14. Is the charge for creating an Internet website taxable?

The charge for creating a website on an ISP’s server is a charge for personal service and it is not subject to sales or use tax.

Get a determination from your accountant. But curious, what prompted the letter from the state to begin with?