Here are the two statements together (exactly as they appear, one after the other) in 334:
1. ‘If you collect state and local sales taxes imposed on you as the seller of goods or services from the buyer, you must include the amount collected in gross receipts.’
2. ‘If you are required to collect state and local taxes imposed on the buyer and turn them over to state or local governments, you generally do not include these amounts in income.’
The difference I'm seeing is 'imposed on seller' and 'imposed on buyer'
My particular use case: My wife, a sole proprietor photographer (or ‘seller’) is required to charge each client (the ‘buyer’) sales tax on the total value of a photoshoot session. We are then required to turn over that tax to the state. So I would think the second statement (imposed on buyer) would be a more accurate guideline to follow, which means I would not include the collected sales tax as part of her income.
But I don't understand what the use case scenario of statement 1 would be - can someone give me an example?
