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1,200 Rhode Island businesses face closure 'unless they pay overdue sales taxes'...

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posted on Jul, 30 2009 @ 10:09 AM

State tax officials have put more than 1,200 businesses across the state on notice this week that they are out of business unless they pay their overdue sales taxes immediately.

For most, that action came in the form of a personal visit from the state Division of Taxation, ordering business owners to lock their doors at once.

By Wednesday, a line of people had queued up inside the Department of Administration building on Smith Hill, waiting their turn to plead their case to a state revenue agent. Some were angry. Others frustrated.

“I understand the state needs money, but to put pressure on the small guy or the moderate guy that’s struggling, it’s not going to do any good,” said Mike Suriani, who owns an electrical supply company in South Providence.

In Suriani’s case, it may have been a bookkeeping error that landed him in the three-hour line. Suriani says he paid his taxes in full — albeit a little late –– and had copies of the cancelled checks from the state showing he had indeed turned over the sales taxes he collected.

But that didn’t keep taxation officials from appearing at his door Tuesday demanding that he close up shop.

“Yes, the rules state that we have a responsibility to pay our bills every quarter. But when your customers come in and they don’t pay you for a month, and then another month, and another month, businesses have no choice [in] the eyes of the state but to close up and get out,” Suriani said.

State officials say they’ve given businesses with sales-tax permits plenty of notice that they’ve fallen behind in making tax payments.

The permits expired on June 30, and the last in a series of letters sent to owners in recent months said they would not be issued new permits without straightening out their tax situation. In the interim, they were told: “You are conducting business without a permit and must cease immediately.”

A handful in line Wednesday said the process wasn’t quite that simple. Desmond Clark, who owns a small video-game store in North Providence, said he spent months trying to negotiate a payment plan with the state that would allow him to keep current on owed taxes, while staying afloat in a tough economy.

“They didn’t want to hear it. They didn’t want any payment plan whatsoever,” said Clark.

funny that they want all the money right away and are not interested in even offering payment plans. Good way to kill small businesses and keep unemployment high.

posted on Jul, 30 2009 @ 10:35 AM
After they force the closing of the small companies their tax base will erode even faster.

The State and the Fed impose heavy fines for even a late payment when you fall behind further worsening the situation.

If the government gave a damn about keeping this country afloat the would gave a tax holiday to small business instead of trillions to the banks and international coroprations.

Just another way the man keeps a brother down.

posted on Jul, 30 2009 @ 09:30 PM
This is total insanity.

First of all, look at a map. Look how small Rhode Island is. There are (literally, not figuratively) large single-bloc landholdings in Western USA that are larger than Rhode Island.

Why not fold the whole thing into, say, Massachusetts or Connecticut and then fire EVERY "state official?" I'm sure those state highworkers I've seen leaning idly on their shovels and smoking ciggies up in MA could spare a daytrip or two to Rhode Island if the need arose. And my can a place that small possibly need a "state senate," a "state house of representatives," pensions for all the ex-members of these august bodies, plus all their secretaries, interns, and other assorted flunkies?

But rather than even consider that they are crushing local low-level businesses by the hundreds. Nice going, guys. Enjoy yer spaghetti tonight up on Federal Hill paid for by the few Provdence taxpayers left.

posted on Jul, 30 2009 @ 10:00 PM
Maybe this is how they will see the corporations take over, so theirs no competition,a nd as someone else here said...make sure unemployment stays high, so illegal immgrants havea better chance than we do, after all the taxes being here they evaded.... i wonder how many states will follow next?

posted on Jul, 30 2009 @ 10:04 PM
If your business is too big to fail, line up to the left and collect your 5 billion dollar bonus.

If your business is too small to prop up, line up on the right and kiss your *ss goodbye.

The future looks pretty bleak.

posted on Jul, 31 2009 @ 02:23 AM
reply to post by silent thunder

Because Rhode Island is a Sovereign Nation with it's own independent Constitution and has a right to exist?

Never forget, Rhode Island was Rhode Island before it was ever a State in the Union.

We are a Republic, you would do well to remember that.

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