Michigan Use Tax Audit Issue: Credit Card Statements
Posted by Ed Kisscorni at 7/3/2008 3:04 PM and is filed under uncategorized 
A very difficult problem has surfaced on use tax audits. It has become popular for taxpayers to purchase property with a credit card. The problem arises when audited by the Michigan Department of Treasury (Treasury). Because the credit card statement does not have detail as to if sales tax was paid, the auditors are considering the payment as subject to use tax unless the taxpayer can prove payment of sales tax.
We recommend the taxpayer retain the original invoice and attach it to the credit card statement from which payment is made. The burden of proof is on the taxpayer to prove the tax was paid.
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