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

Claim everything you possibly can think of.

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

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

What if I just do nothing? :)

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

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.

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:thumbsup

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

:(
Nick

got vasoline?

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.

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

There's a few of those in the State Penn being serviced right now!
http://www.pornconnected.com/members...etsgetiton.gif

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.

dont drop the soap.