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Irs

Discussion in 'Business & Tax Advice' started by [Elite], May 28, 2011.

  1. [Elite]

    [Elite] Junior Member

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    I want to run a website where I will offer my online services to others. I have a friend in USA who will meet with clients. He says that he needs to inform IRS about any earning bigger than 600$ month. He will probably receive money over bank (we are talking about X.XXX$ per month). I don't live in USA. How does the whole process with IRS go? Does he need to report his earning to IRS?
     
    Last edited: May 28, 2011
  2. navone

    navone Registered Member

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    Cool story.
     
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  3. [Elite]

    [Elite] Junior Member

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    If you don't have anything helpful to write- don't post at all!
     
  4. Delboy2424

    Delboy2424 Regular Member

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    ...so you are wanting to know?????
     
  5. thisguykills

    thisguykills Junior Member

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    I would assume

    But then again idk, im just using common sense.
     
  6. [Elite]

    [Elite] Junior Member

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    Will you answer to my question or not?!
     
  7. thisguykills

    thisguykills Junior Member

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    Very few people on this website actually report their earnings to the IRS. As far as the $600 dollar figure, I may be mistaken but I'm pretty sure its $600 for winnings in contests and $12000 for earnings in a year.

    Edit: If you do plan on paying to the IRS in the future, I would look up the figure at the minimum that you have to pay. If out of no where you file an extra $15k in income it will look a bit suspicious.
     
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  8. navone

    navone Registered Member

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    In your initial unedited post, you had no question, just a short story, so I think my comment was appropriate. But now....

    Yes he should declare the money to the IRS, if they find the deposits, he could be penalized in the future. Many people don't though, and don't get caught, so I guess its all about risk vs. reward for your buddy.
     
  9. BorisTipsIt

    BorisTipsIt Regular Member

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    Yes, he has to report earnings to the IRS. The clients will issue a 1099 to him at the end of the year with a copy to the IRS. The IRS then matches up what he reports with what the clients report. He needs to talk to an accountant to get the scoop instead of trying to b.s. his way through it.
     
  10. suga051982

    suga051982 Regular Member

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    If you are a US citizen and earn more than $600 a YEAR, you are supposed to file a tax return yearly. and how much $X,XXX a month are you talking here? If you are talking $1,000 a month, then depending on who the 1099 is issued too, he may not have to pay anything. There is something called a "gift" in the US. The yearly limit is $13k. Who will be paying your friend? You or the clients? It may make more sense to have him register a company here and do business under the company name. That way all payments can be issued to the company and he can be paid a small salary.

    Just my $.02
     
  11. [Elite]

    [Elite] Junior Member

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    ~at least 1000$ per month.
     
  12. Domeno

    Domeno Newbie

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    I thought anything under $10,000 in a year was under the radar? if you win $10,000 at the casino, they report it.. however, if you win $9,999 they don't. Same goes with bank deposits, they only report deposits of $10,000+

    So, I'm unsure about this.. good question... But he may be reporting anything $600+ just to cover his arse in case of an audit, etc....
     
  13. suga051982

    suga051982 Regular Member

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    Then it may make more sense for there to be a company and all transactions go through the company.
     
  14. Cnotey

    Cnotey Power Member

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    The requirement to file for self employed income is > $400. Then they will take %25 of that for self-employment tax.

    However, it's easy to file a loss on self employed income.
     
  15. jonnyquest

    jonnyquest Regular Member

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    that has to do with making deposits into a US bank
     
  16. Virus1

    Virus1 Supreme Member

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    Occupation:
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    Welcome to Black Hat World........................
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    Anything over $600... the one that pays... if in the US... must file a 1099 or similar form.

    But you have to report every dollar made even if its under $600

    example...
    first person pays you $400 ....
    he does not have to file any paper work...
    second person pays you $500
    he does not have to file any paper work..

    BUT you have to report $900 as income.... no matter who gave it to you..

    best thing is to talk to a tax professional....