Say Goodbye to Untaxed Internet Transactions

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JerseyGirl

JerseyGirl

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Feb 5, 2008
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http://nestmannblog.sovereignsociety.com/2008/07/housing-bailout.html

Solid article from some foreign attorney (Austria) who specializes in "providing international wealth preservation services for high-net worth individuals" on how this newest housing bill is going to generate money to bail out Fannie Mae and Freddie Mac by going after unreported internet commissions and transactions.

Obviously, he has an interest in attracting potential customers to < ahem > go offshore with their Interweb Monies.

But what he's discussing will, eventually, trickle down to AM'ers.

The IRS believes that America's small businesses are evading billions of dollars in taxes through unreported credit card transactions. And for that reason, it's long been at the top of their legislative agenda to require credit card issuers and electronic payment systems like PayPal to report sales data to the IRS.

Tax Inquisition Planned to Bail Out Deadbeat Homeowners

The housing bailout bill does just that, broken down in terms of payments to businesses accepting the cards. Essentially, the bill requires Visa, MasterCard, Discover, American Express, PayPal, Amazon, Google Checkpoint, and virtually every other "electronic payment system" to track, aggregate, and report information on nearly every electronic transaction to the IRS.

They must report:
· The gross amount of payment card and third-party network transactions and
· The name, address, and taxpayer identification number of the participating merchant
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Everyone knew something like this was coming down the pike eventually- but it sure pisses me off that they're going after Internet Businesses to bail out the sheeple who bought into the variable rate mortgage lie.
 


JerseyGirl said:
it sure pisses me off that they're going after Internet Businesses to bail out the sheeple who bought into the variable rate mortgage lie.
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Yep, however, let's just hope those same sheeple go back to their old ways with this new bailout and start hyper-spending online again.

It's only a quick fix. When fools are given money, they seem to find ways to give it back to the wise ones. The housing bailout is no different. If you were to take all of the wealth and redistribute it evenly to everyone, the same wealthy people would eventually re-emerge wealthy again and the same fools will always be broke.
 
That's not going after untaxed internet transactions, that's going after people who aren't paying income tax... not sales tax.
 
johu said:
That's not going after untaxed internet transactions, that's going after people who aren't paying income tax... not sales tax.
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I should rephrase.

Untaxed internet transactions, meaning, people who are beneficiaries of internet transactions and produce income- but who do so in so many different pots or with small enough amounts that it isn't reported by their network/ paypal/ etc. - can expect that, sooner or later, these will be reported.

This may not be a big deal for super affiliates who are already well protected and running well-organized LLCs/ S-Corps/ C-Corps... but for the average n00b to moderate-income generating affiliate, as well as those who are operating as sole proprietorships or doing things other than affiliate marketing online- like designing landing pages, logos, working eLance, etc.- this might be enough to signifigantly impact their bottom line.

I suppose the lesson is this:
If you aren't keeping excellent records of where your income comes from and where it's going, now is a good time to start.
 
JerseyGirl said:
I should rephrase.

Untaxed internet transactions, meaning, people who are beneficiaries of internet transactions and produce income- but who do so in so many different pots or with small enough amounts that it isn't reported by their network/ paypal/ etc. - can expect that, sooner or later, these will be reported.

This may not be a big deal for super affiliates who are already well protected and running well-organized LLCs/ S-Corps/ C-Corps... but for the average n00b to moderate-income generating affiliate, as well as those who are operating as sole proprietorships or doing things other than affiliate marketing online- like designing landing pages, logos, working eLance, etc.- this might be enough to signifigantly impact their bottom line.

I suppose the lesson is this:
If you aren't keeping excellent records of where your income comes from and where it's going, now is a good time to start.
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On a small scale, you're right. But what they're doing is forcing a new method of routing payments, one where financial transactions are so segregated from US authority that eventually the perceived gains some dipshit bureaucrat hoped to realize are not only nonexistent, but never had a shot at hitting the treasury.

Don't they in government realize that no matter what you do to restrict, we're already working around your restriction before it ever hits the books.
 
bb_wolfe said:
Don't they in government realize that no matter what you do to restrict, we're already working around your restriction before it ever hits the books.
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No. The government banks on masses being sheeple as much as we do.

Be indepedent, do your own research, and execute your own options.

If everyone did that, both the government and most Affiliate Marketers would be scrambling.
 
This is kind of funny (in the odd, not the haha, way) because earlier this year my accountant was basically giving me the grapefruit eye about how I'd be better off doing all my aff stuff through anonymous online payment providers, and routing funds through "3rd party options".
Namely, ePassporte's credit card to buy myself prepaid VISA's which I can then just dump into something else and cash it out.
Running the numbers it ended up being something like 7% of the gross, which is still a hell of a lot cheaper than the tax would have been (our tax brackets can go all the way up to 48.5% here, although thankfully I'm sitting in the low 30s... + a huge HECS debt)

LotsOfZeros said:
*cough* online barter systems with escrow services *cough*
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Looks like eGold may be getting some new life in it after all...

"eGold, now not just servicing Nigerians"
 
*cough* pay your fucking taxes *cough*
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You are either a tax employee or you own no property. Tax avoidance is the 2nd national sport in Greece. 1st is screwing tourists (both literally, and financially). So, no, I will not pay them!

My advice is to start knowing the accounting stuff and taxes from the beginning, when you are still making small profits. Dont learn accounting. that is not your job, hire an accountant for that. Learn what happens in general, so you know what is going on.

Guys, its not that difficult to lower tax expenses. Simply declare every expense you make as a business expense, and reinvest all cash. Of course, you need to have a personal business to do that, and the tax numbers are not that great. But its better than being a non-entity, i.e. employee.
Look hard to find a clever accountant. A smart one, can save you more cash than what you pay him.
 
glowleaf said:
You are either a tax employee or you own no property. Tax avoidance is the 2nd national sport in Greece. 1st is screwing tourists (both literally, and financially). So, no, I will not pay them!

My advice is to start knowing the accounting stuff and taxes from the beginning, when you are still making small profits. Dont learn accounting. that is not your job, hire an accountant for that. Learn what happens in general, so you know what is going on.

Guys, its not that difficult to lower tax expenses. Simply declare every expense you make as a business expense, and reinvest all cash. Of course, you need to have a personal business to do that, and the tax numbers are not that great. But its better than being a non-entity, i.e. employee.
Look hard to find a clever accountant. A smart one, can save you more cash than what you pay him.
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Not sure what Greece has to do with this, this is a post about the US, right?

As for accounting, I use an accountant to minimize my taxes, and not shady dealings that can backfire. There are still legal ways to pay as little tax as possible - There's no legal reason why you'd pay more. Hell, if a rogue offshore bank employee can leak tax-evasion customer data to the feds, who's safe ( Free Preview - WSJ.com )?
 
johu said:
Not sure what Greece has to do with this, this is a post about the US, right?

As for accounting, I use an accountant to minimize my taxes, and not shady dealings that can backfire. There are still legal ways to pay as little tax as possible - There's no legal reason why you'd pay more. Hell, if a rogue offshore bank employee can leak tax-evasion customer data to the feds, who's safe ( Free Preview - WSJ.com )?
Click to expand...
He may be live in Greece but if his niche attracts customers from US (and worse, he's only an affiliate marketer) it means these taxes will affect him as well.
 
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