TSexpediter
Seasoned Expediter
I am an owner who hired a driver from MI. Based on the 1099 sent to the driver, MI state found me and sent me a letter concerning Michigan taxes.
Reading through the papers I find the following: someone is considered to have physical presence in Michigan if "deliveres goods to Michigan in vehicles it owns, rents, leases, uses, or maintains". In expediting the one who owns the vehicle and the one that leases the vehicle are 2 separate entities. So who does this apply to?
Furthermore is states: "A company that has all of its goods delivered to purchasers in Michigan by an unrelated commom carrier will not have nexus with Michigan."
This scares the heck out of me. What are they saying? just because I deliver goods to Michigan I have to pay taxes to them? And how am I supposed to know when a driver delivers to Michigan?
Has anyone else seen something like this?
Reading through the papers I find the following: someone is considered to have physical presence in Michigan if "deliveres goods to Michigan in vehicles it owns, rents, leases, uses, or maintains". In expediting the one who owns the vehicle and the one that leases the vehicle are 2 separate entities. So who does this apply to?
Furthermore is states: "A company that has all of its goods delivered to purchasers in Michigan by an unrelated commom carrier will not have nexus with Michigan."
This scares the heck out of me. What are they saying? just because I deliver goods to Michigan I have to pay taxes to them? And how am I supposed to know when a driver delivers to Michigan?
Has anyone else seen something like this?
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