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Having a problem reporting taxes on my income can anyone help please?

Discussion in 'Business & Tax Advice' started by JustSomeAnon, Jul 31, 2014.

  1. JustSomeAnon

    JustSomeAnon Registered Member

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    How can i file taxes when i have no receipts for my merchandise that i sell?

    All i have is bank wire transfers. I've talked to 1 CPA/Tax attorney and he said its not possible to file taxes in this situation.

    How do others do it then? I know literally every seller on ebay imports items from china and has no receipts for their items.

    Do they create fake invoices that match their wire transfers or western union payments? This wouldn't be hard to do and would look pretty legitimate.

    Or is there something i don't know?

    Please help :(
     
  2. JustSomeAnon

    JustSomeAnon Registered Member

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    Can anyone help out?
     
  3. Lalalaenhund

    Lalalaenhund Power Member

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    Talk to an accountant would be my advice. I don't know where you're from, but it kind of sounds like that the person you talked to doesn't know what they're talking about.
     
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  4. taxhit

    taxhit Junior Member

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    You can file your taxes with whatever numbers you want. However, if you are ever audited by the IRS (I am assuming you are from the U.S.) you will need to substantiate any expense you have with receipts, invoices, etc. Having just a wire transfer receipt will not likely be considered adequate support since the receipt will not reflect why you sent the money (i.e., buying merchandise). I would suggest asking your vendors to provide you a simple invoice on their letterhead reflecting all of the purchases you made for the year. If you can't get that then maybe they would be willing to at least send you a simple email acknowledging/listing your purchases.
     
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  5. JustSomeAnon

    JustSomeAnon Registered Member

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    Could you give me some insight before i do? You sound like you have some knowledge on this or have a solution for me. Would be much appreciated.
     
  6. JustSomeAnon

    JustSomeAnon Registered Member

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    They could definitely supply me with an email form and even a paper invoice for my purchases. But they are a company based in china, they wont provide me with some fancy merchandise invoice like a real company would. All i would get is a simple based invoice.


    If i am able to get this simple based invoice from them and have wire transfer receipts to match the invoice would that be substantial evidence for the IRS in the case of an audit?

    Would i be able to get away with just one, the invoice from my merchandiser and not provide the wire transfer receipt in the case of an audit?
     
  7. JustSomeAnon

    JustSomeAnon Registered Member

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    bump ^ :( /10 char
     
  8. powerman123

    powerman123 Registered Member

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    Eh I would like an answer to this too. I might run into this problem soon. I wonder how people to do CPA/PPD handle this situation. Have you tried doing TurboTax?
     
  9. JoeMongan

    JoeMongan Jr. VIP Jr. VIP Premium Member

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    You can basically type anything online and yield results that conflict. BHW is an awesome place
    but it's not the place to go for reliable tax advice. :)