Accounting question: Is this ethical and what rules does this violate?

Accounting question: Is this ethical and what rules does this violate?
Tom, CPA, owns a book store in New York and when his customers buy books, they pay sale taxes. Tom has not remitted the sales tax to the State of New York. Is this ethical and what rules does it break?


Answers:

Ryan M:  Not only is it unethical, but illegal!
2008-04-05 17:43:08
Judy:  This isn't just a matter of ethics, it's illegal. It's breaking state laws on sales tax collecting and remitting. Tom won't be a CPA for long once the state catches up with him
2008-04-05 17:51:29
Chosen Answer
Becca:  It is illegal. He needs to pay the state monthly. If he pays by the due date he actually will get a "discount". If he does not pay monthly he will begin to accrue fines. The fines are based on time so the longer he waits to pay the higher they will be.
2008-04-05 17:51:38
MayberryNR5:  its illegal its called tax fraud
2008-04-05 17:56:06
Afroge:  It is illegal and most likely also violates the state board of accounting rules. For this violation (I am not a CPA in the state of New York), you could submit an investigation request to the state board, and also submit an investigation request to the state body who oversees the collection of sales tax monies. Potentially, Tom could have his license sanctioned for this act.
2008-04-08 08:36:28