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Dept. of Taxation... you paid too little for your car

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Old 05-05-09, 08:11 AM
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gs4004gs
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Default Dept. of Taxation... you paid too little for your car

Soooo... first I find out yesterday that my job is cutting everyone to three days a week which hurts bad enough.

To really complete my day I get home and find a letter from the NYS Dept. of Taxation and Finance saying their records indicate that I paid so-and-so much for my GS400 but they believe it's worth over twice as much. Therefore I need to remit $580.03 AND penalties totaling $787.08!

How in the HELL do they have ANY clue what the car I bought was worth? They have no idea what kind of condition it was in, how much work it needed or if the damn car even ran!

Last edited by gs4004gs; 05-05-09 at 08:18 AM.
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Old 05-05-09, 08:21 AM
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thats ****ing outrageous!
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Old 05-05-09, 08:24 AM
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Lovely... I see you're from NY, just like I am.

Check out what kind of letter I got in the mail on saturday from the DMV - they are saying my wife owes them $650 for some kind of Drivers Responsibility crap that they passed, because she has more than 6 points on her license. She already paid the god damn fine!

Its just beyond me where the hell all these lawmakers come from and how the hell do they come up with this crap, and why the people let them get away with it. I wish they all would crawl back into the hole they came from.
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Old 05-05-09, 08:48 AM
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When did you buy the car? i wonder how far back they can search.
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Old 05-05-09, 08:54 AM
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Unbelievable!

Big Brother is watching...
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Old 05-05-09, 08:57 AM
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Just be happy they are only making you pay the tax on what the believe the "underpayment" is. The way its going, in a couple of years they could make you pay the entire differnce and tax on it, since you paid too little for your car.
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Old 05-05-09, 08:59 AM
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Originally Posted by GSteg
When did you buy the car? i wonder how far back they can search.
I bought it back in October.

If they think I am paying taxes I don't owe or have, they need a reality check.
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Old 05-05-09, 09:00 AM
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Originally Posted by gs4004gs
Soooo... first I find out yesterday that my job is cutting everyone to three days a week which hurts bad enough.

To really complete my day I get home and find a letter from the NYS Dept. of Taxation and Finance saying their records indicate that I paid so-and-so much for my GS400 but they believe it's worth over twice as much. Therefore I need to remit $580.03 AND penalties totaling $787.08!

How in the HELL do they have ANY clue what the car I bought was worth? They have no idea what kind of condition it was in, how much work it needed or if the damn car even ran!
Another great reason to leave NEW YORK, my god how can anyone live there?? They shaft you from cradle to death, there must be other places you can find to live. LOL
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Old 05-05-09, 09:08 AM
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Unless you can provide some substantial documentation that you actually paid only $5000, I'm afraid they may (?) have the law on their side on this one. I don't know the specifics of your car, its condition, or mileage, but I ran a general Kelley Blue Book for you, with average equipment and mileage (96,000) for a car of that vintage and came up with $11,150 retail, which is not far from the $11,750 they claim. Even if NY state goes by the KBB Private Party figure instead of Average Retail, It's going to be long way from the $5000 that you reported.

http://www.kbb.com/KBB/UsedCars/Pric...%7C0%7C#survey

The letter, of course, mentions a "Wholesale" figure of $11,750 for your car, but "Wholesale", in the sense of the way that NY state uses the term, may not (?) be the same way that KBB uses it. But the fact that their figure.....and KBB's.......is pretty close says something.

Last edited by mmarshall; 05-05-09 at 09:12 AM.
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Old 05-05-09, 09:19 AM
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I'm not surprised.

btw - In California if you buy from a family member, there is no sales tax due.
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Old 05-05-09, 09:24 AM
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My whole point is that NYS has no clue what condition the car was in when I bought it therefore has no way to know what it's true value is. Assumptions are not a valid legal argument.

I have spent my entire life in NY but I've about had it with a lot of what goes on here.
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Old 05-05-09, 09:33 AM
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Originally Posted by gs4004gs
My whole point is that NYS has no clue what condition the car was in when I bought it therefore has no way to know what it's true value is. Assumptions are not a valid legal argument.
Well, again, regardless of the car's condition or mileage, do you at least have a cancelled check, a Bill of Sale, or another piece of paper to document with you actually paid for it? Your insurance company may (?) even have that figure on file for you somewhere in your records....many auto insurance companies will not issue a policy without knowing what you paid for it.

I'm not a lawyer, but I'm just trying to level with you. Without some kind of $5000 documentation, I think you are going to have a tough time fighting this one, but good luck.

have spent my entire life in NY but I've about had it with a lot of what goes on here.
NY state is notoriously strict with taxes, but a number of other states aren't that much better.
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Old 05-05-09, 09:47 AM
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You have to fill out a bill of sale to register the car and it has to be signed by both the seller and the buyer. NYS already has all the proof they need.

There are a lot of other things going on in NY that have soured my taste for the state.
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Old 05-05-09, 09:53 AM
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I just got off the phone with them... this is RIDICULOUS.

I asked her if she knew anything about cars owned and driven in Queens NY for 9 years. "No sorry sir we're in upstate NY so we don't know about that" Well then how in the hell would you know how hard it is on them structurally or that you have to park on the street every night with people constantly playing bumper pool?

I asked if she wanted to see some pictures of the shape the car was in when I got it. "No sir those won't help us determine the cars value."

They want me to request a copy of the bill of sale from NYS-DMV but she warned me it wouldn't be easy to get. WAIT... you work for NYS why don't YOU request it?

They also want any receipts I can drum up to prove I have had to do work to the car. I do a lot of it myself... should I make out invoices to me?

I stayed calm on the phone but this is just WAY out of control.
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Old 05-05-09, 09:59 AM
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Originally Posted by Och
Lovely... I see you're from NY, just like I am.

Check out what kind of letter I got in the mail on saturday from the DMV - they are saying my wife owes them $650 for some kind of Drivers Responsibility crap that they passed, because she has more than 6 points on her license. She already paid the god damn fine!

Its just beyond me where the hell all these lawmakers come from and how the hell do they come up with this crap, and why the people let them get away with it. I wish they all would crawl back into the hole they came from.
That is ridiculous and it is just a way to get more money for your state that is in dire need for money. It is even more ridiculous that you have to pay taxes on something you buy used. The taxes were already paid on the vehicle 2 or 3 times when bought new so you should not have to pay them again when selling used. I could not believe I had to pay taxes on a private car sale when I got my GS, the govt had nothing to do with that transaction yet gets a nice cut and to top it off when I was going to re-register it in another state that I was temporarily living in I was going to have to pay another $600+ in taxes based on what the car was worth just to register and get a license plate in that state after paying over $900 just a year before. I would be pissed if the govt decided I got too good a deal on the private transaction and made me pay more to them, how do they know the circumstances of the sale or condition of the car? As to why lawmakers/politicians get away with all this crap and people keep voting for them it just boils down to people keep voting tax happy/fee happy/fine happy/penalty happy Democrats in and don't understand the consequences.

My friend on the east coast gets tickets all the time for parking in front of his house in the city (I got one too before) because the laws are purposely vague. He finds out after days of calling and asking questions you can't park 60 feet from the corner which means the owners of 3 to 4 homes up including his can't legally park in front of their homes without getting tickets which is ridiculous. He then asks if they can at least mark off where you can't park and put up a sign clearly explaining the law and they say they don't have the money/budget to do that. His neighbor finds out and measures the 60feet and spray paints a marker and then puts up two temporary signs saying you will get a ticket if you park here as a warning. The very next day a road crew is there painting over where he marked it and taking away the warning signs and a cop is there asking who did this. The neighbors start complaining of all the tickets they/others get because nobody knows it is illegal to park in that area and it is not marked and the cop could care less and is giving them an attitude, one neighbor says they will just sit on their porches and take turns warning people they can't park there until they put up a sign or change the ordinance and the cop said if they do that they will be fined or arrested. So the state does not have enough money to mark off and put up a simple sign saying you can't park in that section yet suddenly has enough to immediately pay a road crew to come and paint over where someone marked off where you are not allowed to park but there is graffiti all over that they won't pay to remove Fact is they make too much money off of the vague law and will continue to rip people off.
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