File Taxes?

[taked0wn]

dumb question but I'm curious, what would happen if you don't taxes for this webmaster stuff?

[basschick]

the same thing that happens if you don't pay taxes for anything that you stick in your bank account...

your bank and your sponsors keep reporting your income to the irs, and eventually you owe them like a zillion dollars in late fees as well as your normal taxes. if you don't pay them after three years or so, they freeze your bank account to get your attention.

if you still ignore them, they sometimes seize it and your property. they wait quite a while, though, and do their best to contact you.

[Rich]

LEt's add to that only earnings above $600 from any one particular sponsor need be reported, by them or by you.Theoretically if you had 10 sponsor paying you 500 each for the entire year, none of them would HAVE to report it, and neither would you. However, it is a good idea to do so.

Rich

[jayeff]

Wrong... at least about your responsibilities. You have to report according to your total income, so $5,000 is $5,000 whether earned from one sponsor or ten.

BTW records of what you have been paid still exist with your sponsors, even if they have paid you less than $600. The IRS might see those records and, unless you have taken steps to deliberately hide your income, minor receipts will also show up in your bank or somewhere else.

If you earn enough, pay someone to help you with legal tax avoidance. Evade taxes and eventually you WILL be caught. The penalties are very stiff indeed.

[Rich]

According to my accountant, (former IRS auditor).. Neither the company, nor the taxpayer is truly obligated to report earnings under 600.. Granted if you DO get audited then yes you are more than likely screwed when your bank records are looked over..

[The Professional]

Can anyone shed some light on what us Canadians do for filing taxes for this stuff....

The Professional

[taked0wn]

thanks fellas, I guess I'll file these damn taxes

[nic]

but sam, you didn't make any money in 2000?

[taked0wn]

I know, I was just trying to throw in another post, so here's another

[shane94]

Rich is right (= anything under 600.00 does not have to be reported....most will not even send you a 1099 (=
Shane

[lynch1000s]

Yeah, I'm new at this whole tax thing too. Do they just send you some kind of bill, and you pay it.

Fuck, I'm screwed. I've been depositing thousands of dollars into my account, and I just spent it all. So is everything tracked, and what type of percent do you have to pay???

[breest]

Shit im claimin everything, the IRS doesnt like young people with lots of cash =)

-Breest

[shane94]

I HATE TAXES!

[TwinTone]

One of my major sponsors is an offshore. They don't even have my SS#. I cash their checks at a local check cashing place (no id required.) I see no way for the IRS to know of this income.. although its only about $800 to $1000 a month. By no means do I feel guilty. I call it payback. I make most of my signups from other countries outside the US.. so why should they get my money?

[jayeff]

but unless it's only going into the local bar or whatever, you are buying stuff, right?

Some of that, cars or whatever, gets you listed somewhere... those records do end up being checked sooner or later.

If you don't want to get more crap than you can handle, either pay someone to show you how to avoid taxes, or pay the taxes. Anything else, you are kidding yourself...

[Mikey]

They put Al Capone away for not paying his taxes.

[Labret]

Spend 25K on Guatamalan Economic Citizenship Package that allows for "rebirth".

Open several IBC's under new citizenship / name.

Get corresponding offshore accounts.

Deposit money.

Never plan on bringing it back into this country.

The last thing you want to mess with is the IRS... unless you somehow enjoy the thought of losing everything.

[basschick]

rich is sort of right - i talked to the irs on the phone this week and 3 sponsors that paid me less than $600 still sent in paperwork to them. they weren't obligated to send it in, but they did anyway.

most importantly, your bank knows how much you deposit and also reports to the government.

[shane94]

What if you got all your money in a pickle jar burried in the back yard...thats ok then right??

J/k (=

[lynch1000s]

What percent of your earnings will be taxed???

[basschick]

lynch1000s, it ain't that simple. on the form, they want you to deduct ALL your business expenses - travel, server fees, content, advertising, phone usage, cost of dialup, office supplies,scripts, everything...

also depreciation of any furniture or equipment.

then they make you do lots of other stuff to arrive at the portion of your taxable income.