@TaxHelp_01 wrote:
Please read IRS Publication 334.
You seem to have skipped Chapter 7 that gives a more rounded answer:
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.
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.
It depends on who the state "imposes" the tax on: the buyer or the seller.
I recently learned that my state (Minnesota) imposes it on the seller (even though they are required to collect it from customers). That means in my state it should be included in gross receipts (then deducted as an expense).
