WANRING BUSINESS THREAD AHEAD - Paypal / Epassporte Tax Question
 

Technically, these types of services are 'cash' accounts however, they function as 'banks'.

How did you classify them on your returns this year?

Regards,

Lee

Lee, can you ICQ me tomorow? 161375873

thx,
Ray

Ray,

Shoot me an email lee @ gamediacorp.com i dont do ICQ to well ;)

Regards,

Lee

Officially, you should be reporting them (screen shots, transaction logs, ...), but they tend to be a paradise for those wanting to avoid paying taxes. And I agree, it's quite tempting with those virtual VISA cards : the money just 'disappears'.
But still, there's law and dreams...

Will do

thx!

I don't think PayPal uses SSNs. Do they?

Just added the income to turnover. It is pretty easy, when you transfer the funds to your bank account it just gets classed as a sale. Not exactly rocket science.

Assuming you wanted to keep your records properly, from an accounting point of view you would treat both just like bank accounts. The main difference is that your accountant/auditor would not be so easily able to independently verify the balance at your year-end. That might cause some issues if the sums involved were large: not in simple book-keeping terms, but as regards the accountant being willing to sign off that your accounts were "a fair and accurate statement... etc...".

Thats the problem, the funds never 'hit' our bank account.

They get 'reinvested' into the business directly from Paypal or Epass :)

Im just trying to figure out the 'proper' way to report the transactions through either system.

Regards,

Lee

Okay cool thats what we did, thanks :)

Regards,

Lee

I kind of realised that you meant what do you do with the funds that are remaining in the account after I had posted. We just withdraw the money straight away.