Investors May Be Scofflaws

The Arizona Republic reports that Chandler tax collectors are searching property and utility records to catch what they suspect are hundreds of real estate investors who aren't paying sales taxes on rental income. Chandler has hired a part-time ASU graduate intern to examine real estate and utility records, looking for disparities in property and mailing addresses, and in names of owners and occupants. The city recently sent notices to more than 1,000 homes that appeared to be rentals but lacked sales tax licenses. Chandler isn't the only city trying to catch landlords who aren't paying sales taxes. Scottsdale, Tempe, Glendale, Paradise Valley, Mesa and Phoenix all have a variety of investigative programs to catch tax cheats. The Arizona Dept of Real Estate is also involved . The department recently called on agents to report those among them who encourage buyers to lie on property records to avoid taxes. Agents who do this face disciplinary action that could include license suspension or revocation. Are you documenting your communication of tax reporting requirements to your investors? More...