Forum

Filing Taxes
 

I have a basic question about filing taxes..

When it's time to file taxes, the IRS is obviously going to see that
I'm bringing in more than what's on my W2 from my day job.
So how do I avoid being audited? If they ask, where did all this extra
Income come from, I'm obviously not going to tell them it's from a
Stealth ebay account..
????

Re: Filing Taxes
 

Just tell them that you’re a freelancer

Re: Filing Taxes
 

why wouldn't you tell them it's from a stealth ebay account? Do you think it's illegal or something?
Even if it was, IRS doesn't care. They don't care how you got your money. They just want their money.

Re: Filing Taxes
 

Report your profits on a 1099K you fill out yourself, and then reconcile your expenses, if you're really worry about it.

It's all pretty easily done on a Schedule C.

Re: Filing Taxes
 

if you sold 200 transactions and $20k last year,Paypal should have sent you a 1099K which showed how much you have collected (gross) .
If you think selling on Ebay is a business,then file schedule C,you will find plenty of deductions like drive to post office,home office,cost of goods sold,shipping,etc etc.
but if you are just selling whatever you have in your house,IRS does not expect you to make a profit as you probably paid more than what you sold.
you can just report them as extra income on 1040.(sales minus your expenses).
Does your state know you are a seller?

Re: Filing Taxes
 

freelancing income is taxable income,if the person who hire you to work for him and I dont recall how much ,he has t o file a 1099 with IRS and a copy comes to you.

Re: Filing Taxes
 

James13 is right,IRS does not care if you have a stealth account,when money landed in your bank account or paypal account,thats your money.
if you are audited,they want to see 2 years of your bank statements .
if you run a business,they want to see the sales ledger,vendor invoices,come to your house and look at your home office,storage etc.
Your home office should be strictly for business,not your den where children play and watch TV or play cards,so if there is a field audit,you want to remove any evidence from that office.
if you are claiming storage for your inventory,make it a separate room or closet.

Re: Filing Taxes
 

I sold on many stealth accounts over 15 years now guys. Took in alot of money. Paypal never sent me a 1099 form or nothing. IRS never bothered me in the 15 year time frame. I never paid a cent to to the IRS

Re: Filing Taxes
 

While not an action to condone....definitely able to with stealth

Re: Filing Taxes
 

Thanks everyone. Good Info.
I'll claim freelance, not business.

Re: Filing Taxes
 

I thought it wasn't legal because the accounts are made with
made up ssn, name, address, etc.

Re: Filing Taxes
 

No my state doesn't know

Re: Filing Taxes
 

There's not supposed to be any made up SSN on a stealth account.

Re: Filing Taxes
 

maDe up SSN or someone else's SSN?
eBAY is now collecting sales tax for you and remitting to the state,so if someone from your state buys from you,your state would know yu are selling

Re: Filing Taxes
 

Made up SSN is illegal though - careful

Re: Filing Taxes
 

Isn't there a morotorium on tax collection now?

Re: Filing Taxes
 

lol. imagine if there wasn't? IRS is better off putting on the brakes for awhile. Not pausing tax collection would just cause more problems.

Re: Filing Taxes
 

Stupid me already paid :(

Re: Filing Taxes
 

Hold on. You used a ⊗⊗⊗⊗ SNN?

Re: Filing Taxes
 

Imagine if the “made up” SSN actually belonged to somebody... you’ll be in deep trouble lol.

Re: Filing Taxes
 

I really hope that wouldn't be the case.... never ever enter an SSN to an account basically.

Whenever there is one, it's a big red flag.

Re: Filing Taxes
 

they extend the deadline for filing 2019 income tax,where did you hear moratoium