Has an affiliate marketer ever been audited?
- Thread starter lanwar
- Start date
I was audited by the IRS last year.
The main issue I ran into was being able to deduct expenses from income-producing activities that are not declared on my returns. For example, I trade futures and currencies and had written off the data services expenses and the commissions. The agent informed me that I couldn't be a trader, since traders work for brokers or exchanges. If you'e audited, be prepared to explain your income.
The main issue I ran into was being able to deduct expenses from income-producing activities that are not declared on my returns. For example, I trade futures and currencies and had written off the data services expenses and the commissions. The agent informed me that I couldn't be a trader, since traders work for brokers or exchanges. If you'e audited, be prepared to explain your income.
I got audited 2 yrs ago and then they hit me with a back audit of 5 yrs.
Wasnt pretty. I've got lawyers and accountants now. I ran my own business since I was 16 on the side of my job and just had bad practices of not documenting everything. That's no excuse to the IRS nor to myself but after that, I took it more seriously.
Wasnt pretty. I've got lawyers and accountants now. I ran my own business since I was 16 on the side of my job and just had bad practices of not documenting everything. That's no excuse to the IRS nor to myself but after that, I took it more seriously.
posted by sinewave:
That's silly. It is commonly known that broker commissions are tax deductible; they are filed on the 1099B, usually provided by your broker. Software, consultant services etc. are all generally tax deductible as well. Don't take my word for it; five seconds on Google pulled this page up at Schwab that gets into the specifics.
Agent was bullshitting you, or trying to substitute a badge for competency.
Frank
That's silly. It is commonly known that broker commissions are tax deductible; they are filed on the 1099B, usually provided by your broker. Software, consultant services etc. are all generally tax deductible as well. Don't take my word for it; five seconds on Google pulled this page up at Schwab that gets into the specifics.
Agent was bullshitting you, or trying to substitute a badge for competency.
Frank
I'm aware of that. He just didn't know any better.
@Ruck They did five years for me too.
I admit I haven't been reading enough, in the wake of Obama I wouldn't be surprised if there has been a taxes poll/thread. So I'll ask this and maybe start one, but who here thinks they could expand and even higher additional employee(s) if they had less of a tax burden? This includes everything from fuel taxes (utilities), to income taxes, taxes on health care, etc. I read some articles lately about small business essentially getting hosed while the big guys get cash.
I haven't been audited but I know a few others who get audited almost yearly. Best advice is as soon as it happens lawyer up with someone who specializes in it. I know many who have gotten off with an extra $5k when they really owed an extra $60k.