sales tax collect is not your income so technically you do noy report it as income and thus do not take your payments as an expense. Realistically, it depends on whether or not the 1099s the business gets includes them. if the 1099s do include sales tax, due to IRS matching, include the amount in sales and then take an offsetting deduction for the amount included. some states offer a discount for submitting sales tax forms. that is business income. include on line for other income
