Company is charging for services that the State of Michigan offers for free
LANSING – Michigan Attorney General Bill Schuette today released a new consumer alert to warn Michigan business owners of a potential sales tax application scam.
An online company called Sales Tax Application Organization claims that business owners can apply for a license to collect state sales tax through a portal on its website. The company charges a fee and asks for personal information. However, in Michigan this can be done through the state, for free, in as little as seven days.
While Michigan has not yet seen this scam, Schuette and his Consumer Protection Team have released a new alert to prevent Michigan business owners from falling victim to this scam. A source from outside Michigan reports that no service is actually provided, and the money paid disappeared.
“Consumer Protection is one of the fundamental roles of the Michigan Attorney General,” said Schuette. “The team works diligently to warn residents of scams before they happen, and this alert is a perfect example. Michigan business owners should beware and are encouraged to file a complaint if they encounter this scam.”
Schuette advises business owners to be cautious if they receive an unprompted link from an online service that states it will register your business to collect sales tax with the state for a fee. Companies like this are often hard to verify. If an online business provides no contact information such as a phone number, email address, or any employee names, this should serve as a red flag.
Schuette advises that residents check with the State Department of Treasury to find the correct way to register to collect sales tax in Michigan.
The attorney general provides consumer alerts to inform the public of unfair, misleading, or deceptive business practices and to provide information and guidance on issues of concern.
Residents can visit the attorney general’s website to subscribe and receive the latest consumer alerts.
To report a scam, file a complaint, or get additional information, contact the Michigan Department of Attorney General:
CONSUMER PROTECTION DIVISION
P.O. Box 30213 Lansing, MI 48909
Toll free: 877-765-8388