TAX questios?

[Guest011214]

I spoke to a wonderful client a few months ago who was a tax expert.....

I cant remember his name but I hope he will come forward and PM me

I need you to help me with my taxes....please?

[Guest041014-2]

I am not a tax guy but I am pretty sure that you don't report your income to the IRS.

[Audrey Astor]

Not sure where that came from. Most of us ladies who have made this our profession and act professional do indeed pay taxes. Lol.

Angel honey, if you don't get the help you need, PM me and I'll give you my accountant's contact info.
Xo

[Guest041014-2]

And the 1099 says what?

[royamcr]

Originally Posted by Dawg

And the 1099 says what?

Probably more than yours.

[Audrey Astor]

Originally Posted by Dawg

And the 1099 says what?

What? What do you mean? They have the tax year, the name of the corporation, LLC, etc., the amount earned, tax payer ID, etc. They contain a good portion of the same data as a W-2. Why do you ask? I think the original question was asking about an accountant to prepare taxes. No?

[paragod]

He probably meant what do you put for your occupation.

The IRS doesn't care what you put for an occupation as long as they get your money.

"Entertainer" works just fine as far as the IRS goes.

[Dragracer]

Originally Posted by Angel in KC

I spoke to a wonderful client a few months ago who was a tax expert.....

I cant remember his name but I hope he will come forward and PM me

I need you to help me with my taxes....please?

.

[lookn2u4fun69]

this comes up every now and then. I do taxes for a living have a masters in tax. ( yeah boring)
anyway, for profession on schedule C list personal service you have to have an SIC code to go with it.
its a damned it ya do damned if ya dont. on one hand you dont want to pay taxes on the other you wont get a loan to buy a car or anything else makes if you cant prove any income. the way banking n loa companies work these days the self employed have to jump thru hoops to get any financing.
I have this conversation hundreds of times and would be glad to do it again. let me know if I can help.

[JRLawrence]

Originally Posted by Dawg

I am not a tax guy but I am pretty sure that you don't report your income to the IRS.

Uncalled for! Reporting income for tax purposes is an obligation of everyone. (Note, I did not say report everything.)

However, there are formulas that the IRS uses to estimate income; so, be careful, keep records and documents to prove the amount reported; a second set of hidden books for yourself may be in order.

But, you obviously can not live like a king and report the income of a pauper.

My favorite provider has a regular job to report her normal income; and, she lives a modest life.

Money can be saved from tax avoidance, if it is done in small amounts that is set aside over many years. Kinda like an IRA.

It makes life easy for her.

JR

[Unique_Carpenter]

Originally Posted by JRLawrence

However, there are formulas that the IRS uses to estimate income; so, be careful, keep records and documents to prove the amount reported...

Thank you JR; and I'll add: Ignoring situations where single moms get gifts from family and friends to help support kids, the IRS estimate situation JR mentions is also called: The Capone calculation. So record keeping, to some extent, is somewhat needed.

[lookn2u4fun69]

there has also been the 'cohan' defense

[Unique_Carpenter]

Originally Posted by lookn2u4fun69

there has also been the 'cohan' defense

If you're referring to the NYC case, that failed. Any good badge can trace any financial transaction easily. Banks, Credit card outfits, investment outfits, all follow federal rules so they can stay in business. That means they happily assist the badge with whatever. And, they make service fees doing it. In the NYC case, someone else paid his credit cards. Just another variation of the Capone calculation.

[JRLawrence]

Originally Posted by Unique_Carpenter

If you're referring to the NYC case, that failed. Any good badge can trace any financial transaction easily. Banks, Credit card outfits, investment outfits, all follow federal rules so they can stay in business. That means they happily assist the badge with whatever. And, they make service fees doing it. In the NYC case, someone else paid his credit cards. Just another variation of the Capone calculation.

However, this is an all cash business (usually), much the same as a barbershop. But a barber that reports a very low income, and spends a lot of money, is going to find he has problems. Sure he can skim $20 off the top, but when he does he is likely to loose track of what he is doing and will get caught because of the arrogance. Know yourself, as the old saying goes. If you know you are cheating, you better be able to explain where you got the money. Money from family can be recorded too.

The farmers were told by the IRS they had to have a log book for the use of farm trucks; so they went to court and won. Then the IRS told them they needed a log book to prove that the truck was used on the farm to prove that they didn't need a farm log book. DUH!

Know where you are is just good business, and it will allow you some deductions.

JR