Tax-Free Weekend Fraud
Municipalities, states, and even counties can all levy sales taxes for government revenue. While a few states, such as Delaware, do not assess a sales tax, most of the states rely on this taxation for government finances. This total tax can range from only 4% in states like Georgia to over 12% in some areas of Alabama. Sometimes, states will grant consumers “Tax-Free Weekends” as a way to save money and increase sales.
When states have tax-free weekends, these periods of no state sales tax typically come with restrictions. However, some people attempt to skirt around these restrictions by committing tax fraud. For more information, contact a tax fraud attorney from Tycko & Zavareei, LLP, today at 202-973-0900.
Tax-Free Weekend Restrictions
States with tax-free periods often place restrictions on what falls under the tax-free status. For instance, in Texas tax-free status only applies to some school supplies and clothing under $100. It does not apply to larger purchases like furniture.
Fraud for Tax-Free Items
Sometimes, businesses or individuals will misrepresent items for tax-free status. This can rob the government of important funds, which can in turn take money away from important public resources, such as public education. Tax-free weekend fraud includes:
- Misrepresenting an item as tax-free
- Selling or buying an item but not reporting it until tax-free weekend
- Charging one large item as multiple purchases in order to make it tax-free
Fraud is illegal, and it should not be ignored. If you are aware of a tax fraud case, you should contact an attorney as soon as possible.
Contact Us
Tax fraud of any kind deserves the attention of justice system. If you know of an act of tax fraud, whether during tax-free weekend or another time, please contact a knowledgeable tax fraud lawyer from Tycko & Zavareei, LLP, at 202-973-0900 today.
