question about taxes - GoFuckYourself.com

cosis · 01-29-2002, 10:18 AM

HI

I sell some some traffic to webmasters on one of my sites. They either send a check or PayPal me the money. This is hard for me to know what to do when it comes tax time because last year I didn't make enough money to file. This year is different, I know I've made close to 25,000 or so. Does anyone have any knowledge of this or can give me some advice on what to do because this is different from receiving the forms at the end of the year that let you know how much you made exactly.

-Nick

[Labret] · 01-29-2002, 10:20 AM

Claim everything you possibly can think of.

25k? You wont be audited so I would not worry. At all.

MrBrian · 01-29-2002, 10:42 AM

its hard to hide income when it goes into the bank

i would just be honest and think up as many writeoffs as you can. usually at the end of the year, i'll buy a pay b/w in advance, buy a bunch of inventory and/or give out xmas bonuses. so, im not paying too much to uncle sam. best advice is to get an accountant and keep records of everything

cosis · 01-29-2002, 11:44 AM

What if I just do nothing?

RAM · 01-29-2002, 11:47 AM

Quote:

Originally posted by cosis
What if I just do nothing?

If you like hanging out with the fellas you will be very happy with that plan.

UnseenWorld · 01-29-2002, 12:09 PM

Here's a hint: Filing no taxes is a misdemeanor (if you get caught, you'll owe the taxes+penalty). Filing a FALSE tax report is a felony and could result in prison time.

gregtx · 01-29-2002, 04:27 PM

Get a Tax program, find an accountant, or go to f*cking H&R Block. Not filing can really screw ya up in the future... b/c you would have to backtrack... then pay penalties and interest on the money you owe... it will much easier to spend some time and money fixing your problem now...

peace
greg

cosis · 01-31-2002, 08:29 PM

What sucks is that I didn't keep any records, I am young and didn't know any better....

Nick

12clicks · 01-31-2002, 08:44 PM

got vasoline?

Chris R · 01-31-2002, 08:51 PM

Your bank should be able to give you a record of how much you deposited - see if you can figure it out from that. Also, check your paypal records.

I really wouldn't worry too much about it. You should be able to have enough deductions even with 25K that you won't owe that much. Just make your best guess. Your chances of being audited - especially if you include income that you were not 1099ed for are VERY small at that level.

If you honestly report the amount of money you think you made - you are not commiting a crime. You have to have intent. Of course they could say you were, but they are not idiots. If you were in the ballpark - they might slap on some fines - the fact that you are even reporting it shows you are honest - most people probably wouldn't report it at all.

See an accountant if you are really worried - they will put your mind at ease. It shouldn't cost you that much - mine charges $600 for a corporate return - I am sure yours wouldn't be much more than $100-200.

Don't worry. You'll be ok. They don't go after people at that level generally, it just isn't worth their time - I think the average the IRS finds that was underpaid after an audit is like 60,000. Yours isn't even gonna be $600 - they would have to audit 100 people in your situation to euqal their average (this is a guess - but it is probably in the ballpark).

In the future - you should get an accountant - I am kind of in the same boat - as I was running under a sole p, but am switching soon to a corporation. I didn't expect to be making as much as I am, and now I need to keep better records and such. There are some tax benefits to running a corporation, so you might want to talk to a lawyer and an accountant if you expect to make a profit this year as well.

Pornwolf · 01-31-2002, 08:52 PM

"...I'm Young and didn't know any better!"

There's a few of those in the State Penn being serviced right now!

If you are over 18 the rules change!

You wll most likely be ok under $25,000, but keep good records in the future! And spend a couple of hundred to incorporate your biz! It will save you money in the future.

kush · 01-31-2002, 09:17 PM

dont drop the soap.

01-29-2002, 10:18 AM	#1
cosis Confirmed User Industry Role: Join Date: Aug 2001 Location: Beach Posts: 5,280	question about taxes HI I sell some some traffic to webmasters on one of my sites. They either send a check or PayPal me the money. This is hard for me to know what to do when it comes tax time because last year I didn't make enough money to file. This year is different, I know I've made close to 25,000 or so. Does anyone have any knowledge of this or can give me some advice on what to do because this is different from receiving the forms at the end of the year that let you know how much you made exactly. -Nick Last edited by cosis; 01-29-2002 at 10:20 AM..

01-29-2002, 10:42 AM	#3
MrBrian Confirmed User Join Date: Mar 2001 Posts: 1,215	its hard to hide income when it goes into the bank i would just be honest and think up as many writeoffs as you can. usually at the end of the year, i'll buy a pay b/w in advance, buy a bunch of inventory and/or give out xmas bonuses. so, im not paying too much to uncle sam. best advice is to get an accountant and keep records of everything __________________ ICQ #971-2561

01-29-2002, 12:09 PM	#6
UnseenWorld Confirmed User Join Date: May 2001 Location: Portland, OR, USA Posts: 5,279	Here's a hint: Filing no taxes is a misdemeanor (if you get caught, you'll owe the taxes+penalty). Filing a FALSE tax report is a felony and could result in prison time. __________________ SIG TOO BIG! Maximum 120x60 button and no more than 3 text lines of DEFAULT SIZE and COLOR. Unless your sig is for a GFY top banner sponsor, then you may use a 624x80 instead of a 120x60.

01-31-2002, 08:44 PM	#9
12clicks Too lazy to set a custom title Industry Role: Join Date: Jan 2001 Location: God's right hand Posts: 19,788	got vasoline? __________________ I'm not a dinosaur, I'm a crocodile. I've seen dinosaurs come and go and I'm left unimpressed.

01-31-2002, 08:52 PM	#11
Pornwolf Drunk and Unruly Join Date: Jan 2002 Location: Hollywood Posts: 22,712	"...I'm Young and didn't know any better!" There's a few of those in the State Penn being serviced right now! If you are over 18 the rules change! You wll most likely be ok under $25,000, but keep good records in the future! And spend a couple of hundred to incorporate your biz! It will save you money in the future. __________________ I've trusted my sites to them for over a decade... Webair, bitches.

01-29-2002, 10:20 AM	#2
[Labret] Registered User Industry Role: Join Date: May 2001 Location: Са́нкт-Петербу́рг Posts: 10,945	Claim everything you possibly can think of. 25k? You wont be audited so I would not worry. At all.

01-29-2002, 11:44 AM	#4
cosis Confirmed User Industry Role: Join Date: Aug 2001 Location: Beach Posts: 5,280	What if I just do nothing?

01-29-2002, 04:27 PM	#7
gregtx Confirmed User Industry Role: Join Date: Jan 2002 Location: Dallas, TX Posts: 1,929	Get a Tax program, find an accountant, or go to f*cking H&R Block. Not filing can really screw ya up in the future... b/c you would have to backtrack... then pay penalties and interest on the money you owe... it will much easier to spend some time and money fixing your problem now... peace greg

01-31-2002, 08:29 PM	#8
cosis Confirmed User Industry Role: Join Date: Aug 2001 Location: Beach Posts: 5,280	What sucks is that I didn't keep any records, I am young and didn't know any better.... Nick

01-31-2002, 08:51 PM	#10
Chris R Confirmed User Join Date: May 2001 Location: Baltimore, MD USA Posts: 1,151	Your bank should be able to give you a record of how much you deposited - see if you can figure it out from that. Also, check your paypal records. I really wouldn't worry too much about it. You should be able to have enough deductions even with 25K that you won't owe that much. Just make your best guess. Your chances of being audited - especially if you include income that you were not 1099ed for are VERY small at that level. If you honestly report the amount of money you think you made - you are not commiting a crime. You have to have intent. Of course they could say you were, but they are not idiots. If you were in the ballpark - they might slap on some fines - the fact that you are even reporting it shows you are honest - most people probably wouldn't report it at all. See an accountant if you are really worried - they will put your mind at ease. It shouldn't cost you that much - mine charges $600 for a corporate return - I am sure yours wouldn't be much more than $100-200. Don't worry. You'll be ok. They don't go after people at that level generally, it just isn't worth their time - I think the average the IRS finds that was underpaid after an audit is like 60,000. Yours isn't even gonna be $600 - they would have to audit 100 people in your situation to euqal their average (this is a guess - but it is probably in the ballpark). In the future - you should get an accountant - I am kind of in the same boat - as I was running under a sole p, but am switching soon to a corporation. I didn't expect to be making as much as I am, and now I need to keep better records and such. There are some tax benefits to running a corporation, so you might want to talk to a lawyer and an accountant if you expect to make a profit this year as well.

01-31-2002, 09:17 PM	#12
kush Confirmed User Join Date: Feb 2001 Posts: 3,382	dont drop the soap.