So I purchased a stealth account last year and intended to update tax info to an LLC but decided to not mess with it this year and just stay below $20k for now. Well my gross sales were below 20k but the adjusted gross (with shipping, taxes etc) was $21.5k and a 1099K was generated in the bogus name and TIN.
What are my options?
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Re: I accidentally went over $20k/200 on stealth acct
do you want to pay tax on this bogus account?account may be bogus but the money is real.
What IRS does is post the figures to your TIN account,it would show it has sales.
It may do nothing,IRS does not go after every company and individual
Re: I accidentally went over $20k/200 on stealth acct
Quote:
Originally Posted by bubbsvfr
So I purchased a stealth account last year and intended to update tax info to an LLC but decided to not mess with it this year and just stay below $20k for now. Well my gross sales were below 20k but the adjusted gross (with shipping, taxes etc) was $21.5k and a 1099K was generated in the bogus name and TIN.
Re: I accidentally went over $20k/200 on stealth acct
I don't want to take any risk and looking to do things as legally as possible. I'm pretty sure Amazon won't send me an updated 1099 for 2020 if I add an LLC now. The only thing I can come up with is add the LLC to the account, call the IRS and tell them I purchased a business and due to an oversight the LLC was never added and I'd like to pay the taxes on the income and just see what they suggest. Any thoughts on that approach?
Re: I accidentally went over $20k/200 on stealth acct
Quote:
Originally Posted by bubbsvfr
I don't want to take any risk and looking to do things as legally as possible. I'm pretty sure Amazon won't send me an updated 1099 for 2020 if I add an LLC now. The only thing I can come up with is add the LLC to the account, call the IRS and tell them I purchased a business and due to an oversight the LLC was never added and I'd like to pay the taxes on the income and just see what they suggest. Any thoughts on that approach?
Re: I accidentally went over $20k/200 on stealth acct
I WOULD not call IRS.DO NOTHING/
21K is not much for a business,most small businesses do 6-7 figures .
If IRS sends you letter saying we notice you have sales,have you considered filing return?
then you will do so,just because you have sales,does not mean you have profit after deducting all the expenses.
It will only send letter out if this business of your keep making sales for years ,not 1 year
I accidentally went over $20k/200 on stealth acct 
