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Re: IRS and Bank Accounts
 

Right?!? Shame it's seasonal, though. :/

Re: IRS and Bank Accounts
 

Nope, you don't.

1040 line C "Business name. If no separate business name, leave blank."

I figure it's like 1099 MISC income, but the activity pays you instead of an employer.

Re: IRS and Bank Accounts
 

Yea, I can see what you mean. It's like walking into a meat shop and seeing a mining rig in the back.

Re: IRS and Bank Accounts
 

Given how unprofitable mining has been it's a huge disappointment. Saved on heating bill a little but it's seasonal.

$2500 startup costs and going negative while that $$ in BTC 3w ago would be about $4k or +$1500 :doh:


Edit: Nvm. Saved $1k on taxes so almost broke even lol.

Re: IRS and Bank Accounts
 

You guys think you could get docked for not reporting cash back?

Re: IRS and Bank Accounts
 

From what, your credit card?

I've never reported that. :noidea: Only the interest my CU's tell me about on 1099-int's.

Re: IRS and Bank Accounts
 

State taxes was asking for CB income. Never seen that before.

Alliant has a 3%/2.5% CB card. The free CB is not bad.

Re: IRS and Bank Accounts
 

With the small amount most of us get back, definitely not.

Re: IRS and Bank Accounts
 

IDK, Alliant CB in first year would net me $4380, every year after would be $3650. In 2 years it's 8k free cash lol

Re: IRS and Bank Accounts
 

You can report yours. I'm not.

Re: IRS and Bank Accounts
 

IRS considers it a discount. Not income.

As long as you're not provided a 1099, you're golden. :)

Re: IRS and Bank Accounts
 

Huh, maybe state was trying to stick its nose where it shouldnt be :noidea:

Re: IRS and Bank Accounts
 

Don't they always!

Re: IRS and Bank Accounts
 

I think that's something your state in particular is rather notorious for.

Re: IRS and Bank Accounts
 

:noidea::noidea::noidea::noidea::noidea::noidea:

Re: IRS and Bank Accounts
 

So the IRS and states don’t request PayPal transaction history under an audit? Even after a 1099k is filed?

Re: IRS and Bank Accounts
 

Of course they can ask.

Re: IRS and Bank Accounts
 

Any incoming deposit,if not payroll,inheritance,insurance ,tax refund then it must be income you earned and auditor would want to know,esp if it is a large sum.
with state auditor,he could insist you have sold something to a fellow state customer and neglect to collect sales tax,so you now pay his sales tax,you need to keep good records,bank only keep records going back so many years.
You can also go to IRS.GOV and ask for transcripts of past tax returns using your SSN and street address etc.

Re: IRS and Bank Accounts
 

state audit is different from IRS audit,IRS is interested in your income while State is interested if you have collected sales tax or if you have bought something,did you pay sales tax (use tax) for your business.They dont care if your business makes or lose money.
Paypal activities report would show the shipping address of your buyer,state auditor will see if they are from your state.
if your total sales exceed the Paypal 1099,then you have to show that these sales are from out of state customers,else state will insist they are all from local state customer.which makes sense if you are running a brick and mortar store but in cyberspace,how much business do we really do with fellow state residents?

Re: IRS and Bank Accounts
 

not they can ask,THEY WILL ASK.
State goes back 4 years,while IRS goes back???2 years ???

Re: IRS and Bank Accounts
 

they dnt know

Re: IRS and Bank Accounts
 

Yes,I am being audited by state auditor for sales tax collection in the last 4 years.
If he is looking at your bank account (s) for the last 48 months,and spotted a large sum deposit which is not bank transfer between bank accounts,then he could conclude it is a cash sale .
With brick and mortar retail shops,a cash sale is mostly from a state resident so you should collect sales tax (unless he has a resale certificate).
He would ask for proof it is not a cash sale,so be prepared to prove it.
In my case,they are US treasury tax refund and transfer from my brokerage account to earn a little more interest income.
Here is the problem with state sales tax audit,with mail order and internet sales,most sales would be made by out of state customers,so we do not collect sales tax,venues like Ebay and Etsy may collect sales tax for out of state purchases,but we do not get to keep it,they will remit to the states each month.
Ebay and Etsy also collect customs duty for Australia for any purchase under $5xx dollars.
But the state is still going by the traditional method of auditing brick and mortar retailers !
My state rotates retailers every 4 years for sales tax audit,and asks for 4 years of sales ledger,bank statements,vendor invoices etc,which is a lot of work for a 2 % sales I made every year to state residents.
States,esp states where flooding has wrecked many homeowners,find it hard to raise property tax,so they are looking for revenue elsewhere,so keep good records,download your annual Paypal activities ,bank statements etc,you would need it someday