New Jersey Sales Tax Problem

[Borf]

I bought my car in October 2011 for $8500, but on the title I said I bought it for $2500 so I would get out of most of the sales tax. Now, I just got a letter from the state of New Jersey saying the value of the car is $12,650 and I owe them $710.50 in unpaid sales tax. It says if I can prove that I bought the car for the price I said, then I won't have to pay it. I can prove it by getting the seller to sign the paper or showing repair records (which I don't have except for a new windshield).

 

I should be able to get the seller to sign it no problem, but should I still say that I bought it for $2500 or should I say $8500? Does anybody know if the state can look at your bank account records because I took out $8500 the day I bought it. Or if I do say that I bought it for $8500, can I get in trouble for lying on the title?

 

Any advice would be very helpful.

[Spec B]

Get the seller to sign that you bought it for $2500. I seriously doubt they will look at any of your bank accounts for a measly $700 in owed taxes.

 

When the title was signed over to you did the seller sign it stating the sales price of $2500?

[JesseH]

Agreed. You should have gotten a receipt at the time of sale stating the agreed upon $2500 "price". Get this letter.

 

Since you are not a business they probably will not ask to see the deposit. Probably.

 

You are running a risk though. It is New Jersey.

[pillboy]

Jersey really is full of crooks.

[MasAyinde]

Thanks Jesse

[JesseH]

Jersey really is full of crooks.

 

Thanks.

 

[LegGTLT]

I would say pay the $700 in back taxes. Then, lie on your income taxes and the two lies and one truth should even out. If that doesn't work, lie on something else and then hope that doesn't come back to bite you. If it does, only tell a half truth about that lie and you should be equal by that point. Make sense?

[dtmenace]

I say get the seller to sign a letter saying you bought it for ten bucks!

 

Thanks.

[JesseH]

I would say pay the $700 in back taxes. Then, lie on your income taxes and the two lies and one truth should even out. If that doesn't work, lie on something else and then hope that doesn't come back to bite you. If it does, only tell a half truth about that lie and you should be equal by that point. Make sense?

 

That's tax fraud.

 

Thanks.

[LegGTLT]

I bought my car in October 2011 for $8500, but on the title I said I bought it for $2500

What's this?

 

Thanks!

[Magic Marker]

I bought my car in October 2011 for $8500, but on the title I said I bought it for $2500 so I would get out of most of the sales tax. Now, I just got a letter from the state of New Jersey saying the value of the car is $12,650 and I owe them $710.50 in unpaid sales tax. It says if I can prove that I bought the car for the price I said, then I won't have to pay it. I can prove it by getting the seller to sign the paper or showing repair records (which I don't have except for a new windshield).

 

I should be able to get the seller to sign it no problem, but should I still say that I bought it for $2500 or should I say $8500? Does anybody know if the state can look at your bank account records because I took out $8500 the day I bought it. Or if I do say that I bought it for $8500, can I get in trouble for lying on the title?

 

Any advice would be very helpful.

At this point you'll have to keep the charade going for consistnecy. If you can get the seller to sign a paper that you bought the car for $2500, then do it.

 

My gut says that the state won't bother looking up records. They just want a document to really nail down the story you're telling.

 

Although IMO you made a big mistake trying to get out of paying tax. You could have dumbed down the price a little, but a $6k difference is way too much. By doing that you were asking to be red flagged.

[LegGTLT]

Fraud. FTW.

[dtmenace]

Thanks!

[Spec B]

I would have the previous owner sign something that says he sold it to you for $250 and advise the State that in fact, they owe you taxes.

[subleg05gt]

Had the same problem. I bought a ford 250 work van with 200,000 miles on it from my father for 100 bucks because it need a a lot of work. The van prolly worth 1,000 bucks. The state sent me the same letter saying the van is worth $5,000 and I owe another $400 dollars in tax. This state is trying to bend everyone over for money. Haven't responded yet to the letter. My father is going to write the state and tell them the van was beat up and needed a lot of work and to go pound salt.

[quick4dr]

do as you wish, just hope they don't read these posts, cause then your busted regardless. enjoy.

[JesseH]

don't ignore the letter. Trust me.

[Borf]

I wasn't planning on ignoring it. I really just want to know if the state can look at your bank account or not. I took $8500 out the day I bought the car so it is pretty obvious. And if I did say I bought it for $8500 and paid the tax on that, would I get in trouble for lying on the title? I don't think I will because right now I could just pay the tax on $12,650 and not get in trouble. I just don't want to overpay now.

[JesseH]

I wasn't planning on ignoring it. I really just want to know if the state can look at your bank account or not. I took $8500 out the day I bought the car so it is pretty obvious. And if I did say I bought it for $8500 and paid the tax on that, would I get in trouble for lying on the title? I don't think I will because right now I could just pay the tax on $12,650 and not get in trouble. I just don't want to overpay now.

 

They CAN look at your bank account. Will they?? My "guess" is no...

 

Get in trouble? They will make you pay the tax plus interest & penalties.

[NewLegGT67]

At this point you'll have to keep the charade going for consistnecy. If you can get the seller to sign a paper that you bought the car for $2500, then do it.

 

My gut says that the state won't bother looking up records. They just want a document to really nail down the story you're telling.

 

Although IMO you made a big mistake trying to get out of paying tax. You could have dumbed down the price a little, but a $6k difference is way too much. By doing that you were asking to be red flagged.

 

Yep, that definitely raises a red flag with State Tax. I've seen people at the DMV with late model cars worth thousands of dollars tell the clerk the car was a gift from a friend/family member, therefore, they are wondering why they have to pay any sales tax. The DMV and New Jersey will say "C-mon Man"

It's probably a good ideal to find some middle ground to get them off your back and not raise a red flag with Uncle Sam.

[Magic Marker]

Yep, that definitely raises a red flag with State Tax. I've seen people at the DMV with late model cars worth thousands of dollars tell the clerk the car was a gift from a friend/family member, therefore, they are wondering why they have to pay any sales tax. The DMV and New Jersey will say "C-mon Man"

It's probably a good ideal to find some middle ground to get them off your back and not raise a red flag with Uncle Sam.

Someone can gift you a car. You just need the "giver" to sign off that the car was in deed a gift.

 

One time I just paid the tax on a car I bought. It's not worth the hassle if the DMV red flags you.

[AZP Installs]

NYS won't let you reg the car w/o paying the "market value" tax or you need the special form filled out by the seller.

 

-mike

 

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[06_legacygt]

I have gotten this letter before too. The last one I got I had already sold the car haha. I just wrote a strongly worded rebutle letter and never heard back.