FTC to Team up with the IRS. U.S. debt Wiped out in less than one year!

[George Wright]

OK,

This is a Fost. You know, like a flog only a post = fost.

So the FTC stops trying to "take out" all the IMers making huge claims about their income. They simply turn the sales letters complete with "proof of income" screen shots over to the IRS.

The rest is history.

You know, Al Capone didn't go to jail for racketeering, he went to jail for Tax Evasion.

George Wright

[cashcow]

LOL! that's actually a good idea and would kill 2 birds with 1 stone.

[Talltom1]

So the FTC stops trying to "take out" all the IMers making huge claims about their income. They simply turn the sales letters complete with "proof of income" screen shots over to the IRS.


Now that's my definition of 'strategic thinking'...

Talltom

[Kirk Ward]

For all you folks looking to make an extra buck ... it seems the IRS is thinking about resurrecting the private debt collection program it abandoned in March of this year ... see Bounty hunters coming for your back taxes - Top Stocks Blog - MSN Money

Or, you could save a little time and let the IRS do all the work ... just report the scallywags yourself using IRS Form 211 ... http://www.irs.gov/pub/irs-pdf/f211.pdf

Cheers, and happy bounty hunting.

Kirk

[Killer Joe]

The IRS actually went after some online marketers in the Real Estate niche a few years ago who made big income claims and filed tiny tax returns.

Either way those guys were SCREWED. If they could prove they didn't make the income they claimed they got nailed for false advertising. If they could prove they did make the money they got nailed for tax evasion.

I have no idea how those cases turned out, but at the time it caused quite a stir.

These things may seem like a joke, but the reality is that if the government wants to go after you they can. If you open up a can of worms stating you make X amount of money and use those statements as 'proof' you just put yourself in jeopardy.

You can't have it both ways. If you end up as a file on some IRS agents desk, that file doesn't get put away until all the smoke clears.

If you claim it, pay your taxes. The farther governments get in debt, the farther their tenticles grow.

Don't be the bait.

KJ

[Martin Luxton]

George,

They'll come up with an answer for the IRS . . .

"Yes, I did make a million dollars, but after I paid my affiliates and the programmer and the JV guy (would you like their addresses?) I was left with only 73 cents."

. . . and the FTC

"If you look at the sales page it said I received payments totalling a million. Nowhere did I say what my profit was."

Martin

[seasoned]

Originally Posted by Martin Luxton

George,

They'll come up with an answer for the IRS . . .

"Yes, I did make a million dollars, but after I paid my affiliates and the programmer and the JV guy (would you like their addresses?) I was left with only 73 cents."

. . . and the FTC

"If you look at the sales page it said I received payments totalling a million. Nowhere did I say what my profit was."

Martin

Actually, that is illegal. The programmer, JV guy, and big affiliates should get a 1099. ALSO, that is NOT income anyway! If you DON'T issue a 1099, and the value is over what the IRS allows, YOU owe it. If you issue a 1099, and it is false, it is PERJURY, and could land you in jail. Actually, people show the payments as "proof", but generally DO claim to have MADE, or profited.

Steve

[Jon Steel]

that's great information ... very interesting.

js

[Terry Crim]

How does it work with the immediate affiliate payments? Where you use or signup to a affiliate system that pays every other sale or whatever the percentage is your paypal. The processing is done through your paypal account, you process the transaction, the affiliate system just send the referral to your paypal account just as if it was a normal sale of your own product.

I think in these sitautions no 1099 or IRS reporting by the affiliate program owner is needed because YOU, Your business actually processed the payment and if there is a refund request you are the one that has to handle that and NOT the product owner.

Please let me know if my thinking is wrong with this setup.


Thanks,

- Terry

[Killer Joe]

Originally Posted by Terry Crim

Please let me know if my thinking is wrong with this setup. Terry

Terry,

As a machine shop owner (ret) I had to 1099 anyone I paid over $600 to, and anybody/business that paid me over $600 had to 1099 me.

It works both ways. The money has to be reported by some entity.

Can you get away without reporting? Heck, you can be a tax cheat and run the Treasury Department

KJ

[seasoned]

Originally Posted by Killer Joe

Terry,

As a machine shop owner (ret) I had to 1099 anyone I paid over $600 to, and anybody/business that paid me over $600 had to 1099 me.

It works both ways. The money has to be reported by some entity.

Can you get away without reporting? Heck, you can be a tax cheat and run the Treasury Department

KJ

Yeah, AND Paypal will track money you are paid, and there are records you WOULD NOT BELIEVE!

Steve

[Terry Crim]

Right but in the situation I am talking about.. I am not paying anyone. The affiliates are the ones that collect the money, I don't ever see that money, for all intents and purposes THEY are the merchant I just control the initial product access via membership or shopping cart system.

In the situation were I collect the money then pay % out to the affiliate, YES I would have to send a 1099 over $X amount. But in the situation I am talking about, the affiliate handles all payment transactions they are sent via the affiliate system.

Similar to the RAP membership script or several others out there that do similar type of thing either built-in or via addon module.

In these situations I do not believe a 1099 is required since my business is not actually sending any monies at all and noone is being paid monies via my business paypal or other processor direct or indirectly from any account my business owns.

To be clear what I am asking is for affiliate / jv partner split pay where every 2nd or 3rd or 4th sale the buyer is sent directly to the affiliate / jv partners processor to pay and that affiliate or jv partner keeps 100% of that sale. My business NEVER sees that money and no payments are made from any accounts I or my business owns. Sale just is handled 100% directly via the affiliate / jv partner processor.

In this situation, my understanding is there is no 1099 I have to send because of what I described above in how the process works. I could be wrong though and that is what I was asking about.

Hope that clears up any confusion with what I was saying.

- Terry

[Terry Crim]

Reporting of sale and revenue would be handled by the affiliate / jv partner, just wanted to make that clear. Taxes would still have to be paid and reported but I would not have to be the one to do that from my understanding. Though I am not exactly sure thus my question.


- Terry