Q: Why is Clash of Clans claiming insufficient funds?

Taxes?  Illinois does not have taxation on internet purchases unless the retailer has a legal nexus within the state .  I know because I have an online business in Illinois.  Unless the developers/distributors of this product, or iTunes,  has a legal permanent mailing address in Illinois, which they don't, then this should not be going on.  Illinois does NOT require taxes be withdrawn from internet purchases outside of Illinois nor does the US have a VAT tax.  Other states cannot tax an Illinois purchase.  So again, where are these thousands of dollars going, because I know I'm not the only one being "taxed"?  Can you tell me specifically which jurisdiction or government body is taxing these purchases and at what percent?  Thank you

If that is the story they are offering, then I'm afraid I have to disagree with you.  You only can collect taxes on internet sales from WITHIN the state where you have a physical nexus NOT across state lines.   Itunes does not operate a physical nexus (have an actual physical building) within Illinois, thus they cannot tax an Illinois purchase based on an Illinois address.  There IS NO internet tax and my purchase cannot be taxed by California (or wherever the iTunes base is now) unless I physically LIVE in that state.  Again, there is no reference to tax at time of purchase, no STATE mentioned at time of purchase and NO TAX RATE declared.  As an internet retailer, I can tell you, that is flirting with a lawsuit and a knock on the door from the FTC and possibly the IRS looking for their "tax" money.  It would be a book keeping nightmare for ANY retailer of ANY size to collect, catagorize and then distribute tax money to each and every state, county, city, and township in the U.S on a quarterly basis.  The internet would die a quick death.

Im sure the lawyers for Facebook were familiar with fraudulent "likes" as well but they got caught using fraudulent accounts to boost advertising sales.  Your snide comment shows you have no answer for this problem.  I am very familar with tax law Stedman, that is why I am giving an opportunity for someone within the community to come up with a logical explanation of why thousands of people, mostly unfamiliar with tax laws, are being taxed to the point of devaluation of their proper and rightful full value of purchase.  By the way, AMAZON does not tax interstate sales unless they have a nexus in the state.  Apple opened retail stores in most states so they now charge if the shipment is FROM Illinois to Illinois residents, but not across state lines.  APPs are an internet based download and thus come from a central data site, not individual retail stores.  So again, what state is taxing me and at what rate?