For The U.S. Federal Tax Departmet | ToBox
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For The U.S. Federal Tax Departmet

Today, the annual high-speed growth of the American online market has created many legendary companies, such as Amazon. Because e-commerce has many cross-state and regional factors, it has introduced a number new issues to the state and federal governments.

For example, it has recently been reported on Amazons issues with tax evasion. After a long-term analysis by our team and one year of analysis and research of the Amazon platform, we have identified the root cause of Amazon's tax evasion.

First, many non-U.S. overseas companies open stores on Amazon. They purchase goods in Vietnam, Philippine, Mexico, and China and then ship the goods to the United States through third-party logistics clearance companies. Many customs clearance companies make false declarations and omit to report the true value of the goods to avoid higher customs tax.

After the goods arrive in the United States, the third-party logistics company sends the goods directly to the FBA warehouse according to Amazon sellers requirements. When an Amazon customer orders the products, Amazon ships the goods from its own FBA warehouse. After the transaction is completed, Amazon deducts its own costs from the sales, and transfers the remaining revenue directly to the seller in US dollars

Indirectly, this means that the overseas sellers have sold the goods in the United States, due to the number of organizations and transaction involved, the government is not able to easily identify this, and due to lack of accurate reporting on the company’s parts often goes unnoticed. Amazon emphasizes that it is the seller’s responsibility to pay taxes if selling on its platform. However, as the sellers are often foreign entities, it can be very difficult for the US government to monitor, even if they are identified on the platform, they can easily register a new account and start selling again. According to our investigation, each seller will often register multiple companies, and some sellers are operating up to more than 100 companies at one time. 

ToBox​ helps to solve this problem by using blockchain technology, which is inherently resistant to modification. It is our mission to use this technology to make everything honest and transparent. This of course also includes any taxes that should be turned over to the US government.

We use blockchain technology to record all transactions on the ToBox platform, and automatically calculate in which states the orders were made, and where the product originates from. In this way, each company must honor its tax obligations honestly, and we are honored that this technology can help the U.S. government make steps towards solving its tax problems.

If you are a local state government you can get in touch with us, we will open up access for you to our platform, and our system will be linked to your local tax office account. Monthly, the system will automatically clear the sales tax to each state government.

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