Is the Taxman clueless to goings on of the online kingdom?

11 years ago

I got tax forms from Amazon, Clickbank, Spreadshirt and I think LinkShare and someone else...I know I got 5 of them....maybe Google. I don't know but I know I have at least 5 tax forms sitting in a pile.

Thanks

{{ DiscussionBoard.errors[7704345].message }}

shafto

11 years ago

What you have to remember is that all online payments are recorded forever. So if at some point in time you get investigated then they will probably find all your income.

My story is that i started making money online from 2006, started with a low amount that quickly became more than my regular income from a well paid job. Although the taxman never came after me, i realised that i had to declare it or i would be looking over my shoulder for the rest of my life.

My advice, if it's a small amount like you mentioned then forget it, but if it becomes more and regular then declare.

[ 1 ] Thanks

{{ DiscussionBoard.errors[7704364].message }}

onSubie

11 years ago

Hi

It depends on the country so check with your tax office.

Many countries (like Canada, don't know about the UK) get income reports from PayPal and eBay for citizens that pass a certain threshold.

I think it is $5,000 or $10,000 but if you make that much or more through PayPal, that income is reported to Canada Revenue by PayPal.

For smaller amounts, $100 here or $100 there, you are supposed to report it, but there may not be a mechanism to catch you if you don't.

If you are making thousands of dollars online and not reporting it, you could get into tax trouble.

The best way to be organized is keep track of your income and expenses so if you have to report anything or are audited, you have the paperwork to back up your claims.

Mahlon

[ 1 ] Thanks

{{ DiscussionBoard.errors[7704379].message }}

Richard Tunnah

11 years ago

Many of the online companies like paypal, clickbank, amazon can and do release details of your earnings to local tax authorities. So my advice as always is to get an accountant who will help you with your questions. Most do an intial consultation free anyway.

Thanks

{{ DiscussionBoard.errors[7704382].message }}

danb12

11 years ago

If you work online for yourself in the UK, you need to register as self employed.

You then need to find a decent accountant that will help with your tax.

Always put money aside, not 100% of the money in your bank is yours, remember that.
You should be holding back at least 20% for tax (depends what your earning), so when your bill comes in, and its save 14% of your earnings for the year (coz your great accountant saved you loads) you will have a nice lump sum to play with. Its always in horrible January is self assessments, so I always use the money I've saved to go on holiday for a few weeks.

My accountant is great, and yes as your working online, all must come into a bank account, so it will be seen. No cash in hand jobs online.

You will get great tax savings for your office room, electric, phone line, gas etc...
This will take your tax bill down by 6-7% if you find the right guy.

He might cost you £500 a year, but can save you up to £3K+ depending on what your earning.

Remember you don't need to pay tax if you earn under £8K.
If you only declare your earning £8K per year, with no other earnings they will check you out because you can't live on 8k per year in the UK. Impossible and they know it.

Or, move to Jersey - TAX FREE!!

[ 1 ] Thanks
1 reply

Signature

UK Coupon Website PR1 making Â£300+ per month - QUICK SALE - CHEAP SALE - CONTACT ME

{{ DiscussionBoard.errors[7704407].message }}

Alexa Smith Banned 11 years ago

Originally Posted by danb12

Or, move to Jersey - TAX FREE!!

I'm afraid not. Jersey has had 20% income tax (flat rate) for many decades, and still does. (And Guernsey does, also. Sark has none, but then again it also has no mains water supplies, mains drainage, and a number of other services taken for granted elsewhere).
- Thanks
{{ DiscussionBoard.errors[7705921].message }}

salegurus

11 years ago

Pay your taxes now and avoid any discomfort later.
Besides, if the earners don't pay taxes how are the freeloaders going
to get their monthly handouts?

Thanks
1 reply

Signature

Think of how stupid the average person is, and realize half of them are stupider than that.

― George Carlin

{{ DiscussionBoard.errors[7704427].message }}

danb12 11 years ago

Originally Posted by salegurus

Pay your taxes now and avoid any discomfort later.
Besides, if the earners don't pay taxes how are the freeloaders going
to get their monthly handouts?

The BUMS of the world you mean... LOL
- Thanks
Signature
UK Coupon Website PR1 making Â£300+ per month - QUICK SALE - CHEAP SALE - CONTACT ME
{{ DiscussionBoard.errors[7704452].message }}

seasoned

11 years ago

Well, the way it SHOULD work, and the way it works in the US, is that you pay for what you MAKE! If you made £300, you have to pay for that. The UK MIGHT be ignorant of that but don't bet on it. They probably aren't in the US either. The IRS(US) is having every little avenue SHUT. If you don't report the income, they will come back.

And if you entered your UK TIN anywhere on your account, your income likely WILL be tied to that and there is a good chance that it WILL be reported.

Steve

Thanks

{{ DiscussionBoard.errors[7704460].message }}

bluecoyotemedia

11 years ago

thank goodness for business expenses

[ 1 ] Thanks

Signature

Skunkworks: noun. informal.

A clandestine group operating without any external intervention or oversight. Such groups achieve significant breakthroughs rarely discussed in public because they operate "outside the box".
https://short-stuff.com/-Mjk0fDExOA==

{{ DiscussionBoard.errors[7704583].message }}

talfighel

11 years ago

Every year, I actually take all the money I earned and all the money I spent online and take that to my accountant. It is always a good thing to disclose how much money you made and spent if your money making efforts online are your only source of income.

If you are doing this on the side and are earning small money then it is your choice to disclose to them that you made money.

Everyone is different.

Thanks

Signature

---> [URGENT] Here's How To Build Wealth With Gold And
Silver And Earn Up To $7,000 Per Week!

{{ DiscussionBoard.errors[7704616].message }}

Jeff Schuman

11 years ago

In the United States the tax man is not clueless. It is the Congress that is clueless and spends about $1 Trillion a year more then they collect.

Smart business people, including Internet marketers, incorporate in a state like Nevada, Wyoming, or Delaware where there is no state income tax. Then they and write off every legal thing they can. Until our congress mena nd women pull their head all of the way out, and gets a national sales tax or consumption tax, you have to play the game with the cards you have been dealt.

[ 2 ] Thanks

Signature

Jeff Schuman - SEO Blog Writer For Hire! Buy affordable, SEO, quality, MMO niche blog articles. Fast turnaround.

{{ DiscussionBoard.errors[7704633].message }}

tpw

11 years ago

At the beginning of 2012, there were a number of threads about this topic, because starting in 2011, PayPal was required to report earnings that met a certain threshold to the U.S. Federal Government.

I have so far received my tax statements from Google, Amazon and another 12 companies from whom I received commissions in 2012.

Years ago, it would have been possible to dodge the tax man. These days, it isn't really possible at all.

Since Ebay owns PayPal, I cannot imagine that you will not also receive tax forms from Ebay.

Only a fool dodges paying the IRS, because tax evasion is a felony and getting caught could have a price to pay in jail time and fines.

[ 1 ] Thanks
1 reply

Signature

Bill Platt, Oklahoma USA, PlattPublishing.com
Publish Coloring Books for Profit (WSOTD 7-30-2015)

{{ DiscussionBoard.errors[7704916].message }}

Jeff Schuman

11 years ago

Originally Posted by tpw

At the beginning of 2012, there were a number of threads about this topic, because starting in 2011, PayPal was required to report earnings that met a certain threshold to the U.S. Federal Government.

I have so far received my tax statements from Google, Amazon and another 12 companies from whom I received commissions in 2012.

Years ago, it would have been possible to dodge the tax man. These days, it isn't really possible at all.

Since Ebay owns PayPal, I cannot imagine that you will not also receive tax forms from Ebay.

Only a fool dodges paying the IRS, because tax evasion is a felony and getting caught could have a price to pay in jail time and fines.

I agree Bill. I would never dodge the IRS. The key is to legally take advantage of tax laws, deductions etc. I would rather lower my tax bill and give some of the savings to a couple of meaningful charities then give it to Harry Reid and company and have them waste it on things I do not believe in. That is just my personal feelings anyway.

[ 2 ] Thanks
1 reply

Signature

Jeff Schuman - SEO Blog Writer For Hire! Buy affordable, SEO, quality, MMO niche blog articles. Fast turnaround.

{{ DiscussionBoard.errors[7705586].message }}

Farish 11 years ago

I some things I like to add to this thread (United States wise).

If you accept credit cards, all credit card processors are now required to send you a 1099K statement. This also includes payment processors like paypal.

The statement must be used under 1 of 2 conditions.

20,000 dollars or more in transactions or 200 transactions done in a single year.

One of the reasons why this started was not about reporting your credit card income, but for the IRS to look at your Bank Records and compare what your credit income is with your other forms of income.

Whole in the wall restaurants is a classic example of this because they are known not to report their cash income. Now the IRS can state well you brought in 100k in Credit Card income but nothing else. Your restaurant costs about 300k a year to run? Why did you not report that other income?

This is start of a new trend to find out how much money you maybe hiding.

Also about incorporating in Tax Friendly states may not be as viable as it use to be.

California now passed a law that if you have any physical presence in their state even if your corporation is based on Nevada they can taxed you based on the income you generated within the state regardless of where your corporation is located.

Other states are expecting to move to this system(some already have). So check the state of your living residence because they maybe able to tag you for this now.

I do not know how this is attach to physical goods versus digital goods but this is something to consider this year.

This above is just the tip of the iceberg and what I spent about 7 hours with a bookkeeper and CPA discussing just the other day.
- Thanks
{{ DiscussionBoard.errors[7705674].message }}

theaccountant

11 years ago

Well folks I have been waiting for and expecting a post on this issue. Feels like a sting to me . Pay your taxes because the uk taxman / us IRS have you firmly on their radar

Thanks

Signature

www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!

{{ DiscussionBoard.errors[7705669].message }}

MikeTucker

11 years ago

You could also just pay your taxes because, you know, it's the right thing to do?

"I like to pay taxes. With them I buy civilization."
-- Oliver Wendell Holmes

[ 1 ] Thanks

Signature

The bartender says: "We don't serve faster-than-light particles here."

...A tachyon enters a bar.

{{ DiscussionBoard.errors[7705786].message }}

Michael Ten

11 years ago

Don't lie on your taxes. Report all your income. Be honest.

Thanks

Signature

New Book! Radical Life Extension. Help me to hasten the defeat of aging.
Michael Ten . Do Nothing Does . All Books by Michael Ten

{{ DiscussionBoard.errors[7705956].message }}

theaccountant

11 years ago

The thought of folks hurriedly removing their website rule from their sig makes me smile

Thanks
2 replies

Signature

www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!

{{ DiscussionBoard.errors[7706014].message }}

theaccountant 11 years ago

Too late if they are watching us which they are . Funny if people boasts about making a million in one month lol
- Thanks
Signature
www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!
{{ DiscussionBoard.errors[7706027].message }}
theaccountant 11 years ago

Originally Posted by theaccountant

The thought of folks hurriedly removing their website rule from their sig makes me smile

You will get link juice for sure then
It will not only the google bots following the backlinks to your site

Better to come clean of your own accord
- Thanks
Signature
www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!
{{ DiscussionBoard.errors[7706059].message }}

entry

11 years ago

Originally Posted by Chris Kent

If you read the papers you will know that in the last few years, HMRC are clamping down on everything.

Declare all your income. IM income is electronic and if you ever get investigated they will nail you.

I heard this too.

They are stricter, on internet marketing?

HMRC can find out via paypal, if people are getting $$ into their paypal accounts, if they don't declare it ?

can you show some resources of articles please

Thanks
1 reply

Signature

I Have to say a Massive...THANK YOU to every Warrior who has helped me, and thanks to every warrior who helps me in the future...

{{ DiscussionBoard.errors[7706126].message }}

tpw

11 years ago

Originally Posted by entry

I heard this too.

They are stricter, on internet marketing?

HMRC can find out via paypal, if people are getting $$ into their paypal accounts, if they don't declare it ?

can you show some resources of articles please

Here you go:

1. Several articles

2. Taxman targeting eBay sellers - what you need to do - Simply Business

Thanks

Signature

Bill Platt, Oklahoma USA, PlattPublishing.com
Publish Coloring Books for Profit (WSOTD 7-30-2015)

{{ DiscussionBoard.errors[7706280].message }}

pheonix44

11 years ago

I am waiting at the moment to get my tax information from PayPal. I have a CPA to help me with taxes.

Thanks
1 reply

Signature

My articles hold the Attention of readers, invoke Action, and get sales! Free Traffic Report Inside

{{ DiscussionBoard.errors[7706297].message }}

28pounds 11 years ago

Within 3 months of trading, always declare self employed and record income and expense and put say 30-40% aside even though the tax in the UK is 20% because they like to take more than you think as an estimate what you may make the following year.

I got into debt and defaults against me back in 2007 because I was late with tax.. took ages to sort out.

Always do it properly as all they need to do is check who a merchant pays commissions to, and if you are not on their books then they WILL come after you

Robbie
- Thanks
{{ DiscussionBoard.errors[7706347].message }}

MartinPlatt

11 years ago

You're not really taking running a business seriously if you do not declare it - it's part of the cost of running a business.

On the other hand if you do have things set up correctly - a decent business structure, an accountant, you can also claim again that tax that you might pay.

It's also a bit odd that you would try to spend all your cash - that's another story though I guess. Maybe have a read of the richest man in Babylon...

Thanks

Signature

Martin Platt
martin-platt.com

Stuck with earning commissions online? Get this get this uncensored affiliate marketing guide for free (sold as coaching for $4,997)

{{ DiscussionBoard.errors[7706359].message }}

theaccountant

11 years ago

The increasingly apparent line of attack against Internet traders by global tax authorities is if in your sales pitch/ wso you say that you made say 10000 sales and you are only declaring for 2000 and they see this difference in the claim and the tax declaration you will be investigated. You may be able to prove to them that your claims were a bunch of marketing lies but the hassle and inconvenience of an investigation is something you don't want to deal with and there is good chance they will dig and dig until they do find something on you

All you need is some hacked off warrior to report you anonymously online and that surely will get the ball rolling

Thanks
1 reply

Signature

www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!

{{ DiscussionBoard.errors[7706373].message }}

seasoned

11 years ago

Originally Posted by theaccountant

The increasingly apparent line of attack against Internet traders by global tax authorities is if in your sales pitch/ wso you say that you made say 10000 sales and you are only declaring for 2000 and they see this difference in the claim and the tax declaration you will be investigated. You may be able to prove to them that your claims were a bunch of marketing lies but the hassle and inconvenience of an investigation is something you don't want to deal with and there is good chance they will dig and dig until they do find something on you

If you are selling a get rich quick scheme, management scheme, etc... and you imply that you are making a significantly greater amount of money than you are, but don't declare it as income, YOU ARE CLOSE TO A FELON, in the US! Pick your poison!

1. OH, I was just kidding, marketing ploy, "EVERYONE DOES IT!"! FINE! You have violated FTC laws, and they are to SUE you! This may include up to and PAST paying back ALL income so derived, and giving up your customer lists.

2. OOOPS, I just didn't report it! Well, they will likely audit you, charge you the difference with penalties and interest, and punishment could even include jail time.

Of course, if you made $90K, and spoke of a six figure salary, maybe you could avoid #1. If you made $90K, and only reported $80K, maybe the IRS will take it easy on you as well. But a significant difference? Well, let's just say people may not be happy.

Steve

Thanks
2 replies

{{ DiscussionBoard.errors[7706593].message }}

theaccountant

11 years ago

Originally Posted by seasoned

If you are selling a get rich quick scheme, management scheme, etc... and you imply that you are making a significantly greater amount of money than you are, but don't declare it as income, YOU ARE CLOSE TO A FELON, in the US! Pick your poison!

1. OH, I was just kidding, marketing ploy, "EVERYONE DOES IT!"! FINE! You have violated FTC laws, and they are to SUE you! This may include up to and PAST paying back ALL income so derived, and giving up your customer lists.

2. OOOPS, I just didn't report it! Well, they will likely audit you, charge you the difference with penalties and interest, and punishment could even include jail time.

Of course, if you made $90K, and spoke of a six figure salary, maybe you could avoid #1. If you made $90K, and only reported $80K, maybe the IRS will take it easy on you as well. But a significant difference? Well, let's just say people may not be happy.

Steve

I am on uk and your points are revealing there are in my opinion let us just say an increasing number of UK based presenters making extra ordinary sales claims.

Thanks

Signature

www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!

{{ DiscussionBoard.errors[7706644].message }}

entry

11 years ago

Originally Posted by seasoned

If you are selling a get rich quick scheme, management scheme, etc... and you imply that you are making a significantly greater
amount of money than you are, but don't declare it as income, YOU ARE CLOSE TO A FELON, in the US! Pick your poison!

You mean if you earn $80,000 , you can declare 'any amount' of it as an income?

that everybody does?

you mean many people say they are making $80,000, when they are actually making $50,000? why does EVERYBODY do this?

or is it a loophole?

and if you earn $80,000, Why do people declare LESS than $80k as income?

and when do people declare MORE than $80K as income? in which instances?

Thanks
3 replies

Signature

I Have to say a Massive...THANK YOU to every Warrior who has helped me, and thanks to every warrior who helps me in the future...

{{ DiscussionBoard.errors[7706647].message }}

theaccountant

11 years ago

Originally Posted by entry

You mean if you earn $80,000 , you can declare 'any amount' of it as an income?

that everybody does?

you mean many people say they are making $80,000, when they are actually making $50,000? why does EVERYBODY do this?

or is it a loophole?

and if you earn $80,000, Why do people declare LESS than $80k as income?

and when do people declare MORE than $80K as income? in which instances?

Do you work for hmrc or are playing dumb?

[ 1 ] Thanks

Signature

www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!

{{ DiscussionBoard.errors[7706661].message }}

seasoned 11 years ago

Originally Posted by entry

[FONT=Arial][SIZE=2]You mean if you earn $80,000 , you can declare 'any amount' of it as an income?

NOPE! I mean that if you fail to properly define a rather small difference, they won't immediately consider you a scam artist or evader. Otherwise, they WILL!

that everybody does?

you mean many people say they are making $80,000, when they are actually making $50,000? why does EVERYBODY do this?

or is it a loophole?

It is called the double standard! Make $60K, say you make $100K to the public, to get them to buy your product so THEY can make $100K, and tell the IRS you made $20K so you can maybe get a subsidy. Of course, try THAT and, if caught, they will likely throw you in jail to wait for trial!

Steve
- Thanks
{{ DiscussionBoard.errors[7706765].message }}

theaccountant

11 years ago

Originally Posted by entry

You mean if you earn $80,000 , you can declare 'any amount' of it as an income?

that everybody does?

you mean many people say they are making $80,000, when they are actually making $50,000? why does EVERYBODY do this?

or is it a loophole?

and if you earn $80,000, Why do people declare LESS than $80k as income?

and when do people declare MORE than $80K as income? in which instances?

On second thought sounds like you are in the US and may need to contact your local CPA

Thanks
1 reply

Signature

www.sandalscashforgold.com- learn about making money out of gold and gold investment

www.seducehotwomen.com- this is the real deal!!

{{ DiscussionBoard.errors[7706813].message }}

Snow_Predator 11 years ago

Taxes are evil! Don't pay them!
- Thanks
- 1 reply
{{ DiscussionBoard.errors[7707030].message }}
- CyberAlien 11 years ago
  
  Originally Posted by Snow_Predator
  
  Taxes are evil! Don't pay them!
  
  I have someone in prison I would like you to pass on a message to
  
  Thanks
  
  1 reply
  
  {{ DiscussionBoard.errors[7707042].message }}
  
  tpw 11 years ago
  
  Originally Posted by Chase Watts
  
  I have someone in prison I would like you to pass on a message to
  
  [ 1 ] Thanks
  
  1 reply
  
  Signature
  
  Bill Platt, Oklahoma USA, PlattPublishing.com
  Publish Coloring Books for Profit (WSOTD 7-30-2015)
  
  {{ DiscussionBoard.errors[7707140].message }}
  
  CyberAlien 11 years ago
  
  Originally Posted by tpw
  
  Or if you were drinking too much the night before and made some bad decisions about who to invite home with you
  
  Thanks
  
  {{ DiscussionBoard.errors[7707144].message }}

WallyKyle50

11 years ago

Friend, I'm of the "End the Fed" breed...Fed who? Tax what?

Thanks

{{ DiscussionBoard.errors[7706703].message }}

goodfella22

11 years ago

usually you need 10k+ in income to file for taxes

Thanks

{{ DiscussionBoard.errors[7706739].message }}

CindyPink

11 years ago

i think you got to hire a virtual assistant. go to odesk or elance, that person will have to do all this work for you.

Thanks

Signature

Here's the fastest way to quit the 9-5 and take back control of your life www.smartnewrich.com/fiverr

{{ DiscussionBoard.errors[7707104].message }}

JasonBennet

11 years ago

For me personally, I will just report it to prevent any potential problems from happening. If you are paying more in taxes, doesn't it mean that you are making more money too

Thanks

{{ DiscussionBoard.errors[7707406].message }}

Is the Taxman clueless to goings on of the online kingdom?

Trending Topics

Any thoughts on golf's latest phenom...Scottie Scheffler??

best high quality crypto traffic.

Some interesting stats about brand comms

Should i Index Author pages?

What's the Best IM-Related Skill to Learn Today That Can Help in the Future?