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Does the Tax Man care about what we sell to make our living?
 

Will IRs care to ask and question our suppliers, where we get our stuff, how much we got it for exactly?

Ik they audit but have no experience ever getting audited obviously since I don't make enough

does paypal or irs get suspcious when it sees like 30 1099's from different sources of money reporting?

Re: Does the Tax Man care about what we sell to make our living?
 

As long as what you are paying adds up...

Re: Does the Tax Man care about what we sell to make our living?
 

Is it true that if audited they need receipts from our suppliers and such?

Re: Does the Tax Man care about what we sell to make our living?
 

You should consult an accountant or tax attorney for guidance and/or questions on an IRS audit.

In general - Yes to receipts and invoices. Just like a personal tax audit, if you are claiming it you need to prove it.

Re: Does the Tax Man care about what we sell to make our living?
 

This.

Many businesses have multiple EIN's and subsidiaries, it's not a big deal as long as you keep a record of your income and expenses.

Re: Does the Tax Man care about what we sell to make our living?
 

Is it just a fine if I was sloppy and never did invoices when buying from people wholesale as a meetup?

Re: Does the Tax Man care about what we sell to make our living?
 

No one can tell you what the IRS will and will not do to you if you get audited and have nothing to back up income and deductions.

Re: Does the Tax Man care about what we sell to make our living?
 

You won't get audited. Become one of the multi-million dollar drop-shippers possibly.

Re: Does the Tax Man care about what we sell to make our living?
 

So as long as long as I file and the numbers seem right - audit is HIGHLY UNLIKELY with revenue like 200k and below?

If so awesome.

Re: Does the Tax Man care about what we sell to make our living?
 

Yes - they'll know if there is something fishy if your income is extremely high in relation to your gross sales.

Re: Does the Tax Man care about what we sell to make our living?
 

What if someone says their income is very low and they almost didn't profit at all against COGS?

Re: Does the Tax Man care about what we sell to make our living?
 

Same thing applies. Your profits are small-fry and wouldn't merit an audit. This is fairly common is new businesses anyway :)

Re: Does the Tax Man care about what we sell to make our living?
 

This kind of financial discussion is beyond the scope of the forum, just fyi - not sanctioned

Re: Does the Tax Man care about what we sell to make our living?
 

Okay do you know anywhere where I can talk about it. Unsure as I need to file in 2018 but never did as a business before.

Re: Does the Tax Man care about what we sell to make our living?
 

I can't even imagine how those 1mil+ dropshippers pay their taxes. The net profit they'd claim would only be a tiny fraction of their gross revenue. Although, if they can prove it all, I personally don't see any issues.

Re: Does the Tax Man care about what we sell to make our living?
 

You are worrying about something that has no answer to or problem with.

Buy items, sell them, make money, report income and pay your taxes. Get audited? so what, who cares? You paid your taxes.

If you are worried about being sloppy, then stop being a hack and get organized. It is not hard.

Re: Does the Tax Man care about what we sell to make our living?
 

Ok the Irs auditing with stealth just appears worrying. Believe me I am a hack and an amateur at this online money makin stuff. i plan learning alot on the forum

Re: Does the Tax Man care about what we sell to make our living?
 

Bit off topic, not surprised "The Taxman" hasn't been replaced by "Tax Person" feminists happy to have the the bad things in life associated with men. Bogeyman, Garbage man...:)

Re: Does the Tax Man care about what we sell to make our living?
 

Speak to a qualified tax accountant in person, not random strangers with self proclaimed titles on the internet.

You make money, you pay taxes. Simple as that. HOW to pay and file those taxes can be clarified by an accountant.

Re: Does the Tax Man care about what we sell to make our living?
 

I wouldn't overthink it too much

Re: Does the Tax Man care about what we sell to make our living?
 

All the advice to 'not worry' because they won't audit 200K or less businesses sucks.

Get a real accountant who knows what's going on to help you.

Re: Does the Tax Man care about what we sell to make our living?
 

Is there an online only CPA that I can use as my income stream really isn't that high. Is intuit live a good place to speak to one and for help?