Thanks, thats what I thought.
The money I withdraw is all my profit. Any cost are withdrawn to supplier banking accounts. And I just claim what I withdraw. Weird setup. :o Quote:
Originally Posted by Modee  twdell, no, you're wrong. That new rule about PayPal applies only to PayPal accounts where the funds are transferred directly overseas, such as to offshore (foreign) accounts. We already went into this in a thread on this forum: http://www.aspkin.com/forums/paypal-...aypal-now.html
twdell, you're also wrong about the IRS having direct access to your bank accounts. You may think it works that way, but not quite.
Aspkin, basically, you can get away with whatever, but if you are audited, you will be asked to provide banking statements and so on, and if they do not jibe with your tax returns, then you would be in trouble and at a minimum owe back taxes and penalties. At that point, if you refused to provide the bank accounts and the IRS could show probable cause, they could subpoena your bank accounts, but it's really not as easy as it seems and they would do that only in a full blown probe.
The way the IRS works more typically is they just propose that you owe a certain amount of tax, and challenge you to dispute it. If you do not dispute, then they enter a federal tax lien if necessary for that amount. Of course, they estimate that tax and penalty so that it will be higher than the reality. If they really think that you got away with murder, and they can't even make a guaranteed (for them) highball estimate, they might take the drastic action I describe above - with the subpoenas and so on. And the deeper you get into it with them, and the more conflict between what you reported and what they unearth - the more chance the probe will end up criminal, which is why you don't want to give them any ⊗⊗⊗⊗ documents of course.
Aspkin, also, the amount of money that transfers from PP to your bank account is not income is it? I mean, you must have cost of goods and expenses to deduct against that. | | 
