| agent006140 | 11-20-2019 12:23 PM |
Re: Friend is giving me his account- need help
Quote:
Originally Posted by phaz0rz
(Post 1049880)
eBay collects and remits sales tax now. Argument voided. :rip:
Income tax would be a different story.
| yes,Ebay is remitting sales tax collected from his sales,Paypal is sending 1099k to his state.
But in a sales tax audit,what Ebay and Paypal submitted for him would be compared to his bank statements and sales ledger and possibly vendor invoices.
if the results do not agree,he has to prove these are not from cash sales,meaning he is selling outside ebay,paypal and accepting cash without collecting sales tax.
(you know how it is,sometimes a retailer would offer a lower price if buyer pays cash or check).
so to prove the state is wrong,he has to dig out all the proofs that they are not from cash sales,it could be a Fed Tax refund,gifts ,gambiing gains,lottery win,wages,moonlight work,inheritance,etc. | 
