7 year old account dead

[talos]

Hey guys,


So...I've had an old account since April 2010 that I've been working on selling 99% of "Chinese goods". I've reached over 6500 feedback on eBay over the years and about 2-3 years ago found this forum and learned to do stealth. I was prompted into finding this forum because paypal at that time had requested invoices from me and limited me. I had in a frantic panic created some odd invoices claiming I receive goods from a legitimate wholesaler and it worked. Now they have done it again, but this time the invoices apparently have not worked and have permanently limited my paypal account. I was grossing each year about 200k in sales.

This account was good because I had created a corporation on this one and used my EIN for paypal which lifted the stupid 200 items/20k limit. For the other stealth accounts, I did not make any corporation but just created sub-level bank accounts under which this main account had. So, the 7 year old paypal account had a bank account, and I went and opened 10 more sub-level accounts under that one and just deposited whatever came into my stealth accounts into those sub accounts.

I don't know what to do now, because opening more stealth accounts I feel will be a problem because the last time I was at the bank and asked to open another sub-level account, the banker looked at me and said "what the hell are you doing?", "Uncle Sam will see this", "your accountant will have a real headache".

I have too much merchandise in storage now and I'm freaking out. I feel like I'm doing stealth wrong. I find it worthless to open another corporation because eventually the ebay account that I will put it on will get some negative feedback and then it's worthless again until negative feedback goes away. I need to be able to have a constant flow of sales throughout the year, and don't know how to do it. Anyone can suggest anything??

[newjerseymax]

You will need to start new and fresh using updated Stealth Methods. It will take some time, but you can get up and going again. This time spread your sales to 10-20 accounts so when you lose and account it is only 5%-10% of sales.

[talos]

Originally Posted by newjerseymax

You will need to start new and fresh using updated Stealth Methods. It will take some time, but you can get up and going again. This time spread your sales to 10-20 accounts so when you lose and account it is only 5%-10% of sales.

I have a bunch of stealth accounts, but I don't have any EIN connected to them. I think the big problem is that my accountant told me to open a corporation and not put an EIN on my personal name to avoid any problems. And he charges me $500 for each corp and since paypal only gives a 1099-K at the end of the year, instead of paying taxes once a year on 200k worth of sales, he makes me come in quarterly and I have to provide him with what I have sold or not, and I still end up paying about $2000 for each corp every quarter of the year.

I guess my question now is, is it alright to put EINs under my personal name? I don't know what each stealth account would be making. One account can make $5000 in gross sales a year, and another can make $20k. Is it better to have a corp on each? I don't know...

[Jingling2017]

Originally Posted by talos

Hey guys,


So...I've had an old account since April 2010 that I've been working on selling 99% of "Chinese goods". I've reached over 6500 feedback on eBay over the years and about 2-3 years ago found this forum and learned to do stealth. I was prompted into finding this forum because paypal at that time had requested invoices from me and limited me. I had in a frantic panic created some odd invoices claiming I receive goods from a legitimate wholesaler and it worked. Now they have done it again, but this time the invoices apparently have not worked and have permanently limited my paypal account. I was grossing each year about 200k in sales.

This account was good because I had created a corporation on this one and used my EIN for paypal which lifted the stupid 200 items/20k limit. For the other stealth accounts, I did not make any corporation but just created sub-level bank accounts under which this main account had. So, the 7 year old paypal account had a bank account, and I went and opened 10 more sub-level accounts under that one and just deposited whatever came into my stealth accounts into those sub accounts.

I don't know what to do now, because opening more stealth accounts I feel will be a problem because the last time I was at the bank and asked to open another sub-level account, the banker looked at me and said "what the hell are you doing?", "Uncle Sam will see this", "your accountant will have a real headache".

I have too much merchandise in storage now and I'm freaking out. I feel like I'm doing stealth wrong. I find it worthless to open another corporation because eventually the ebay account that I will put it on will get some negative feedback and then it's worthless again until negative feedback goes away. I need to be able to have a constant flow of sales throughout the year, and don't know how to do it. Anyone can suggest anything??

Can I ask how many sub-accounts you had with the same bank? As long as you pay taxes on the total what difference does it make? You put a lump sum on your schedule C, shouldn't matter if you have a 1099 associated with it or not. You also pay tax estimates based on your previous year's return, I wouldn't waste a second giving anyone anything during the current tax year makes no sense.

[talos]

Originally Posted by Jingling2017

Can I ask how many sub-accounts you had with the same bank? As long as you pay taxes on the total what difference does it make? You put a lump sum on your schedule C, shouldn't matter if you have a 1099 associated with it or not. You also pay tax estimates based on your previous year's return, I wouldn't waste a second giving anyone anything during the current tax year makes no sense.

Well...on those stealth accounts I never put any tax info in so paypal never really reported anything, so I haven't reported anything either for a couple years. There isn't much that goes into those sub accounts. At maximum, maybe 3 or 4k in each, mostly because paypal stops me with the 200 items/20k limit and I wait until next year until the limit message disappears in a new tax calendar.

I want to be able to continue selling past that limit on each account and I'll be ok with paypal reporting the income, but why is my accountant saying that it's better that I open a corporation and not just an EIN under my personal name? It's costing me a lot if I open a corporation under each stealth account.

[Jingling2017]

Plenty of people don't submit a W2 or 1099 as self employed.

[rsot]

Originally Posted by Jingling2017

Plenty of people don't submit a W2 or 1099 as self employed.

Forum doesn't exist to subvert tax policies...just saying.

newjerseymax is right - OP, you REALLY need to spread all the sales - relying on one account has really cut you down because it is axed, sorry to hear about your predicament.

@OP, you listen to your accountant - as an "enlightened option", you can read a ton of posts made by wise forum members here about "EIN" - search and you will that EIN works.

[talos]

Originally Posted by rsot

@OP, you listen to your accountant - as an "enlightened option", you can read a ton of posts made by wise forum members here about "EIN" - search and you will that EIN works.

I tried searching that now and I remember a while ago as well...EIN is too short to search in the search section...

[dallis]

Wow, a LOT of issues here.

He has to come in quarterly and turn in docs so that can calculate his quarterly tax payment, I'm guessing. That's a good practice.

You should shop around for a different tax/accountant guy. You don't need a corp for every account.

And you MUST declare the income and pay taxes even on the 'only 5K' accounts.

And yeah, the bank is going to find lots and lots of accounts suspicious, with 200K passing through these accounts they're going to think you're trying to circumvent the anti-money-laundering laws, and they're required by law to notify the IRS and law enforcement something may be going on, so you're headed for very huge trouble.

Seriously, you needed top flight professional help. None of us are tax pros, we're online merchants.

For 200K a year you need somebody who has a fiduciary responsibility to YOU.

Find somebody who worked for the IRS, they know all the tricks.