Originally Posted by jojosmommy:
I think you should be able to deduct the items you purchased and if something comes up you then pay what you owe to the irs for the taxes that should have been collected when you paid in the first place. Maybe Tom Copeland can give us some advice on this?
The federal government doesn't collect any sales or use taxes. If any sales taxes are owed on online purchases it would be to your state or city/town/municipality.
I'm no expert, but I seem to remember that many of the online retailers don't charge sales taxes in states where they don't have a physical presence. I know Amazon has a corporate policy that's pretty detailed so that they can specifically avoid charging sales taxes in as many states (if not all of them) as possible.
I would imagine that a lot of states have the "honor" system mentioned by a PP (mine does) to attempt to collect taxes that they feel they are owed.
Whether you pay the sales taxes to your state or city or not, the purchase is still deductible on your federal return if it meets IRS standards.