| cherrqell | 02-04-2011 09:30 AM |
Quote:
Originally Posted by sarah74
(Post 202215)
Hi
I opened a paypal business account back in Dec 2008 but started selling in 2009 slowly.
Nearing the end of 2009 PP asked for my SSN and i gave them.
I never paid any taxes because foolishly I read somewhere you dont need to report ebay sales (which is soo wrong!!)
Now I want to start reporting my sales, can somebody please guide me how to start.
Its better before I receive any letters from the government.
I work full time 9-5 clerical job and already pay taxes for that 9-5 job, its the ebay side sales I havent reported and paid taxes for(from dec 2008 - feb 2011)
where do I start and what advise can anyone give me regarding this concern.
| All you have to do is go back, and file amended tax returns for all of those years. Your are going to have to pay the back taxes, and interest, and perhaps a penalty for underreporting. If the underpayment was less than 25% of your gross income, the IRS can only go back 3 years to audit you, if it was more, they have 6 years. I would consult an accountant, or tax lawyer to get things straight.
You probably wont do any jail time unless you commited fraud, or filed frudulent returns, but they will want their money. Im not a lawyer, and am not positive of any of this info, so I suggest listening to someone who is an expert in these matters.
Good luck | 
