tax returns questions?

[Recherché]

Hello everyone. Just need advice on whether or not I should include items I bought from China on for taxes. Most if not all of these items I have profit margin of between 400 to 800% compared to what i paid for them.

Would it not seem suspicious I'm getting most of products from China the likes of DVD's and DS games that may be illegal (in my case is) and selling for over-the-top profit margins? Would the accountant report it as such to IRS? My receipts state several thousand dollars of items bought from mostly DHgate.

All my accounts are stealth and with the exception of 1 are under $4,000 total deposits from Amazon. I would like to include some profits for my corporation as I have spent several thousand to get it up and running these past two years and would like to report a profit margin (1st year, all loss). Not sure what to include. Any advice would be appreciated.

[First Edition]

Single greatest piece of advice with taxes-

Don't mess with the IRS and electronic transactions. You'll wind up in jail.

Even good drug dealers know they need to report their income!

[ivonnewun]

What about stealth accounts, does the tax man try to contact the name and address on the account?

[NTP]

This is actually a good question.

How do you do your tax stuff with a bunch of accounts with stealth info? Sure your bank accounts have your real info but how do you show where you received the money from?

[aspkin]

I agree with First Edition.. don't mess with the tax man.

NTP just calculate your profit minus your cost and that's what you pay your taxes on. You don't need to 'show' where all your money came from.. just pool it all together.

[First Edition]

You will have the deposits to show for records of income. I keep mine as simple as possible. I pay all expenses through paypal, as much as I can anyway. When I make a withdrawal, it's almost all profit. I set aside a percentage I pay for quarterly taxes, and my book keeper has a super easy job!

However, do not worry about stealth info. the IRS won't ask. They will ask a lot of other questions though, usually in the form of an indictment. (if you don't report)

[Recherché]

I appreciate the help First and Aspkin. I'll just show what I paid to DHgate plus all other expenses and mark it against my profits. That should do. Will use TurboTax Business online to do it with myself. So much simpler than getting tax accountant (as I was going to do) and conjuring up all kinds of scenarios and excuses hoping he doesn't get suspicious where my products come from with such high profit margins. Same with IRS. Simple is always best.

[First Edition]

Whoa whoa whoa...... I would still reccomend getting a tax attorney. Your order supplies, and resell them. Just like everyone else. A tax professional can help you with a lot. For example, you can write off your daily trips to the post office.... things like that turbo tax will not get into.