ty
Senior Member
- Location
- 3rd Rock from the Sun
so, that's what the Kinks were talking about?
customer wants my SSN# so he can 10-99 me?
- Thread starter zappy
- Start date
- Status
so, that's what the Kinks were talking about?
mivey
Senior Member
Just because they were paranoid did not mean the British were not out to get them.
jaylectricity
Senior Member
- Location
- Massachusetts
- Occupation
- licensed journeyman electrician
My point exactly.
Federal EIN
Federal EIN
Once thing is certain - there has been lots of bad advice given to the OP.
It is also very clear the OP and most others who have voiced opinions are not operating a business.
Even if you are a sole proprietor you are a business and are required to have a federal "EIN", and I am sure all states also require you have the state account number. I am also required to have a city business license where my business is located.
And yes, the realtor is required to send you the 1099 for what he has paid you. He also sends a copy to the IRS. This is a very good method of verifying that a sole proprietor is listing all income.
I should also remind everyone that small business (sole proprietor) are also audited much more often than ordinary taxpayers. It is a fact that many sole proprietors do not claim all income, and exaggerate deductions - and the IRS is very alert for anything that seems unusual or excessive. When you are audited you get a nasty little letter in the mail - they will have removed all your deductions, figured your tax on your income, and state you owe
$xx,xxx.xx You have to then gather all your receits and meet with an agent who will go through everything... and I do mean every single item you used to figure your expenses/deductions.
Do you have even 1 part time employee? You better be paying Form 940 and Form 941 taxes, and state tax such as unemployment tax. You might even be required to file those tax forms on a quarterly basis. You also have to pay estimated taxes, quarterly, on your own income.
Jayelectricity please be aware it is illegal to add $10 to the client bill because they give you a check on Bank Of America or Wells Fargo - or any other bank. Deposit their check in your business account and you won't have to pay a fee.
Not every sole proprietor has attempted to cheat on their taxes. I am one who has not. I would not have the guts to even try, since I know a couple sole proprietors who have, and what happened to them.
A fellow EC some years back had to pay $20,000 in back tax, for a year they chose to audit. After finding such a large unpaid tax they then went back and audited every year he was in business.
A roofing contractor I knew lost everything and was up to his eyeballs in debt to the IRS. They hauled him into federal court and gave him jail time on top of a fine, added to the back tax and penalities. I saw him when I drove back in town, he was wearing an orange jumpsuit and sweeping the sidewalk. That poor fellow was on work release, his family got a few bucks, the jail charged board and room, and the IRS got some. True story - what makes it worse is that he was just a small business - had a few guys working with him when he needed them, and he worked right along side them.
Forget those TV ad's that claim to settle your tax liability for pennies on the dollar. If they save you a dime they charge you a dollar.
(Multiplied many many times over).
Federal EIN
Once thing is certain - there has been lots of bad advice given to the OP.
It is also very clear the OP and most others who have voiced opinions are not operating a business.
Even if you are a sole proprietor you are a business and are required to have a federal "EIN", and I am sure all states also require you have the state account number. I am also required to have a city business license where my business is located.
And yes, the realtor is required to send you the 1099 for what he has paid you. He also sends a copy to the IRS. This is a very good method of verifying that a sole proprietor is listing all income.
I should also remind everyone that small business (sole proprietor) are also audited much more often than ordinary taxpayers. It is a fact that many sole proprietors do not claim all income, and exaggerate deductions - and the IRS is very alert for anything that seems unusual or excessive. When you are audited you get a nasty little letter in the mail - they will have removed all your deductions, figured your tax on your income, and state you owe
$xx,xxx.xx You have to then gather all your receits and meet with an agent who will go through everything... and I do mean every single item you used to figure your expenses/deductions.
Do you have even 1 part time employee? You better be paying Form 940 and Form 941 taxes, and state tax such as unemployment tax. You might even be required to file those tax forms on a quarterly basis. You also have to pay estimated taxes, quarterly, on your own income.
Jayelectricity please be aware it is illegal to add $10 to the client bill because they give you a check on Bank Of America or Wells Fargo - or any other bank. Deposit their check in your business account and you won't have to pay a fee.
Not every sole proprietor has attempted to cheat on their taxes. I am one who has not. I would not have the guts to even try, since I know a couple sole proprietors who have, and what happened to them.
A fellow EC some years back had to pay $20,000 in back tax, for a year they chose to audit. After finding such a large unpaid tax they then went back and audited every year he was in business.
A roofing contractor I knew lost everything and was up to his eyeballs in debt to the IRS. They hauled him into federal court and gave him jail time on top of a fine, added to the back tax and penalities. I saw him when I drove back in town, he was wearing an orange jumpsuit and sweeping the sidewalk. That poor fellow was on work release, his family got a few bucks, the jail charged board and room, and the IRS got some. True story - what makes it worse is that he was just a small business - had a few guys working with him when he needed them, and he worked right along side them.
Forget those TV ad's that claim to settle your tax liability for pennies on the dollar. If they save you a dime they charge you a dollar.
(Multiplied many many times over).
- Status