Point of tax reporting and automatic collection system with tax register

• US 8,249,936 B1
• Filed: 11/18/1998
• Issued: 08/21/2012
• Est. Priority Date: 05/10/1995
• Status: Expired due to Fees

• Current Assignee: Taxnet Systems, LLC
• Original Assignee: Taxnet Systems, LLC
• Inventors: Francisco, Paul A., Petschauer, Frederick J.
• Primary Examiner(s): Allen, Akiba
• Application Number:
  US09/195,105
• Time in Patent Office: 5,025 Days
• Field of Search: 705/19, 705/16, 705/21, 705/1, 705/500, 705/20
• US Class Current: 705/19
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A point of sale tax reporting and automatic collection system including a smart tax register located at a retailer location. The retailer smart register processes consumer transactions and calculates the amount of sales tax due the retailer by the consumer for each transaction. Following the transaction, the consumer requests and is give a tax paid receipt. After the sales tax is paid to the retailer by the consumer, the register either immediately or periodically forwards the amount of the transaction and the amount of sales tax collected by the retailer to a computer and memory located at a remote location (e.g. state government taxing authority). The computer and memory receive and store the retailer'"'"'s transaction and sales tax information, and report same to the Internal Revenue Service at least once a year. After receiving the retailer'"'"'s sales tax information, the computer accesses and debits an account belonging to the retailer, the amount debited corresponding to the amount of sales tax collected by the retailer. In sum, the system automatically reports all retailer transactions and sales tax collected by retailers from consumers to local and federal government authorities and then automatically collects the sales tax amounts from retailer accounts so as to prevent retailers from turning over the collected sales tax. A tax paid receipt is given to each consumer as evidence that the tax paid will be turned over to the proper authorities.

Claims

1. A point of sale tax reporting system, comprising:

at least one tax register of a retailer, said tax register including a processor configured to process transaction data and generate tax data including a calculation of an amount of tax to be paid to a government taxing authority for a transaction between a consumer and the retailer; and

a communication link directly connecting over a network said tax register to the government taxing authority, said tax register being programmed to transmit said tax data directly to the government taxing authority via said communication link.

2. The system of claim 1, wherein said transaction data includes an amount of money received by the retailer from the consumer for said transaction.

3. A computer implemented tax reporting system for consumer-retailer transactions, comprising:

a computer system including at least one processor associated with at least one software component executable by the processor collectively operable to;

process transaction data including a sales transaction between a consumer and a retailer,

generate tax data including a calculation of an amount of tax to be paid to a government taxing authority based on the sales transaction,

directly connect via a communication link over a network to the government taxing authority, and

automatically transmit said tax data over the network directly to the government taxing authority via the communication link.