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July 2000

Editor: Scott Gottlieb, CPA
Assistant editor: Susan A. Maffetone, CPA

Should the Internet be Taxed?

Do you have a web site? Do you sell things on it. Do you buy things on the Internet? If you do, you should keep an eye on what is going on with the Internet Tax Freedom Act.

In October 1998, Congress passed the Internet Tax Freedom Act (ITFA).

The ITFA imposed a three-year moratorium on new, multiple, and discriminatory taxes on Internet access and electronic commerce and established the Advisory Commission on Electronic Commerce to examine issues related to Internet taxation.

Most Internet e-commerce site feel since they are subject to the same rules applying to catalog sales, which collect sales taxes only in states in which they have operations.

Legislation being proposed would prevent states and localities going after Internet sales for additional taxes.

What do you think, visit the The Advisory Commission on Electronic Commerce , to find out more information on this important change in taxes.


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