Taxes/Adult biz
 

Hey guys,

This question is more directed at Canadians but I guess anyone can answer http://bbs.gofuckyourself.net/board/smile.gif.

I assume there are plenty of you guys making some serious $$$ every month.. So my question is, do you guys pay taxes on what you earn, or do you just not report it?



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Snazzy
SnazzyTGP.com

Well, I'm from the USA, I make a subsantial income from my online business, and I report every penny I earn (for my corporation, that is). You can get into serious trouble for tax evasion. If you don't have one already (or if you don't have any prior knowledge of taxes), you should get an accountant asap if you are making any real money.

Cassie

what if all payment was sent directly to my checking account? Can IRS find out?

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The IRS has more power than God. Fear them. Pay your taxes.

(there is always a paper trail)

9.9% of the time the sponsors are reporting what they send out, so yes it can be tracked.

If you have screwed up with the taxs so far And Are pulling down some decent change run two places, dont walk, run! one go and get incorporated, and go find a cpa to start on you shit now. and learn from the nill your about it get ;-).. next year take care of the taxs as it comes.

Phew! Well 90% chance of not getting caught http://bbs.gofuckyourself.net/board/rolleyes.gif

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TeenMafia.com
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oh shut up.. i meant 99% slappy http://bbs.gofuckyourself.net/board/wink.gif

ROFL !!!

Snazzy - it isn't a good idea to try and fool Revenue Canada - when (not if) they catch you the fines can be 10x what the original amount was - and they back date interest amounts as well. Get a good accountant http://bbs.gofuckyourself.net/board/smile.gif


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I've been audited twice ...

My former accountant screwed up on a minor thing ... (Needless to say I fired him) ... and it prompted the audit ...

I had good documentation to support my deductions ... so the audits went relatively smoothly ...

I think I had to pay maybe an extra $100 each time ... (They always want to make you pay something no matter how clean you are)

BUT WHAT A FREAKING HASSLE !!!!!!

Believe me. Even if you're totally clean ... you don't want to risk getting on the IRS hit list!

Once they flag you ... even if the first audit is clean ... they'll audit you every year and bury you with paperwork and hassles !!!!!!!

And, of course, with what you're talking about ... they'll nail you to the wall ... With triple damages, penalties and interest for whatever tax money you scammed ...

Make no mistake ... even it's only a one percent chance ... Definitely NOT worth it!

Of course ... Canada doesn't have the IRS ... so it may be different ...

But after what I've been through, I'd never want to risk even minor problems with any tax authority.



[This message has been edited by erotictrance (edited 01-10-2002).]

I do my own taxes, so what is the advantage to become incorporated?

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http://www.lostbush.com/sub.html

High conversion Cheerleader Fetish

say you make 10k a month. How much you have to pay as taxes in USA/Canada ?

I missed my last 2 quarterly payments, so I'm gonna be paying some nice penalties on them. I'd better cut back on my spending and get some taxes paid here. I'd surely hate to be audited, that'd really suck.

Does anyone know what this year is gonna be like audit wise ??? Ya know like for last year, they said that audits were at an all time low because they cut staff and stuff. Is that the same thing this year ?? I think that I'd probably be ok with the audit, I just wouldn't want one, he he he.

Actually ... I do my own taxes now. After that accountant screwed up I figured I couldn't do any worse ... Not to mention saving the exorbitant fee ...

(I actually hired the bastard to make sure I wouldn't be audited and was reporting things properly ... and he got me flagged anyway.)

Even with an audit last year, I did pretty good thanks to programs like Turbo Tax ... Although you have to be careful and still do some homework. It's easy to make mistakes with those programs even if you do have some knowledge about what you're doing. After the first audit I had some education so that helped a lot.

Setting up a corporation can have tax advantages ... but it largely depends upon how you set it up. You can also be liable for double taxes if you don't know what you're doing.

Yeah ... I read that stuff about how audits were supposedly down. I got audited anyway despite the previous year's clean audit record.

The reason, I discovered, is that they're more tightly scrutinizing small, home based businesses ... particularly Schedule C type business operations. Those audits are way up despite any reported overall decline in audits.

Just some advice: The key with any auditor is don't bullshit them. Just show them a ton of documentation to back up whatever revenue and business expenses you're reporting.

So many people go in there trying to bullshit them --- with no documentation whatsoever --- that if you're up front and straight about it ... they'll sometimes cut you some slack and even help you.

During my first audit, the IRS rep pointed out that the stupid accountant had missed some other deductions that I was entitled to !!! ... I had paid more taxes than I should have !!! LOL

And last year, I made a couple of minor mistakes so I just told the auditor, "You know what? I screwed up. Can I just refile?" She said sure, and it was resolved.

But again, it was because I had documented everything. Auditors have a lot of discretion so good documentation and less bullshit is always advised ... LOL



[This message has been edited by erotictrance (edited 01-10-2002).]

It all depends upon what your business deductions are, what other deductions you might have (like home interest deductions if you own a home) ... and if your filing your business income and expenses along with your personal tax return like in a sole proprietorship ... Or, by contrast, filing a seperate tax return for your corporation, partnership, etc. (If you have one.)

Once you determine the deductions and, consequently, your net income ... that puts you in a certain tax bracket ... which varies according to your net income.

A program like Turbo Tax might give you some idea.



[This message has been edited by erotictrance (edited 01-10-2002).]

Oh I have no intentions of trying to fool them.. I was just trying to figure out what the best way of doing the good ol taxes when I start making serious money from this biz...

I'll probably get an accountant to do that shit for me http://bbs.gofuckyourself.net/board/wink.gif.



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Snazzy
SnazzyTGP.com

Thanks for the insight guys! Some good information there. I'll definatly be doing some more research into this...



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Snazzy
SnazzyTGP.com