cred65 Posted August 10, 2013 Report Share Posted August 10, 2013 http://online.wsj.com/article/SB10001424127887323838204579003093483824248.html?mod=WSJ_hps_LEFTTopStories Link to comment Share on other sites More sharing options...
Guest Taxed Posted August 10, 2013 Report Share Posted August 10, 2013 I can see Mr. Issa having a fit over it??? Link to comment Share on other sites More sharing options...
Jack from Ohio Posted August 10, 2013 Report Share Posted August 10, 2013 OK, post the content. Not everyone subscribes to the WSJ. 1 Link to comment Share on other sites More sharing options...
Guest Taxed Posted August 11, 2013 Report Share Posted August 11, 2013 This post should really be moved to the politics forum. Jack go to foxnews.com and see the "controversy" of IRS sending letters to 20,000 small business owners reminding them that they need to also include cash income as taxable income?? What a scandal?? Link to comment Share on other sites More sharing options...
cred65 Posted August 11, 2013 Author Report Share Posted August 11, 2013 trying to attach PDFwsj re irs0001.pdf Link to comment Share on other sites More sharing options...
Jack from Ohio Posted August 11, 2013 Report Share Posted August 11, 2013 The problem the letters are dealing with is as old as business itself. We all KNOW that many business operators do "Cash under the table" or "barter" transactions that are not reported. I have heard people that are on welfare, food stamps and Section 8 housing say "I am paid 'under the table' so I don't have to report the income and can keep my government assistance." Last tax season I sent 2 prospective new clients out the door after they used those very words to me. "...has created some heartache in the small business community." "There's an emotional thing when you get a pretty ominous-looking letter from the IRS [saying] you might have done some bad things." The only ones with heartache or emotional distress are the ones that know they have been underreporting income. Sorry, no sympathy here. I saw two waitresses get notices for additional income after the employer, two years later, was audited. Seems that tips on credit card payments were around 17%. Tips on cash payments were 2%. Hmmmmmmmmm Restaurant owner had to pay additional SS & Medicare tax on the calculated 15% shortfall and the waitresses involved all received letters showing they had incurred the additional income. 4 Link to comment Share on other sites More sharing options...
joanmcq Posted August 12, 2013 Report Share Posted August 12, 2013 I have an issue with the gift shop owner quoted. Now of course sales tax would be included in the gross of the merchant card payments, but not in gross receipts. BUT she's trying to say she didn't have $6532 of cash sales in nearly $250K revenue? Gimme a break! If someone is solely web-based, then I could see no cash sales. Or a frikkin new car dealer. But a gift shop? Another non-scandal. IMHO it shows how much the media is trying to create a scandal where there is none. This one is just a lot more apparent to us tax folks. 1 Link to comment Share on other sites More sharing options...
Guest Taxed Posted August 12, 2013 Report Share Posted August 12, 2013 You would be amazed to find out how many "convenience stores" type business just want to put down as gross sales what is on their 1099-K. Link to comment Share on other sites More sharing options...
kcjenkins Posted August 12, 2013 Report Share Posted August 12, 2013 Nah, no tax professional, unless they are brand new to the business, would be amazed. We've seen it way too often. We routinely ask questions to bring out the 'missing' info. Link to comment Share on other sites More sharing options...
Guest Taxed Posted August 15, 2013 Report Share Posted August 15, 2013 Foxnews seems to have taken up this cause. Yesterday they interviewed a small business owner who received this letter. I saw a part of the interview and he was irate that he had to pay his accountant to review the letter which was basically informational. It was NOT an examination. So that is the angle Foxnews is taking that it is a scandal? Link to comment Share on other sites More sharing options...
kcjenkins Posted August 15, 2013 Report Share Posted August 15, 2013 No, not every story is a "scandal". Fox is not calling this a scandal. It's just a simple fact that any story about taxes gets a lot of viewer interest. Probably because everybody has strong feelings about the IRS. Networks like to run stories that viewers are interested in. Link to comment Share on other sites More sharing options...
Guest Taxed Posted August 15, 2013 Report Share Posted August 15, 2013 It is a scandal as far as the right wing media and talk shows are concerned. Hannity has not let go of it since the news broke! Link to comment Share on other sites More sharing options...
jainen Posted August 15, 2013 Report Share Posted August 15, 2013 >>This post should really be moved to the politics forum<< OMG! Everybody here AGREES--not only with each other, but even with the IRS! That's gotta be a first in this forum! Please LOCK the thread while we are ahead. We're starting to deteriorate into a disagreement about how it's being reported, which is a whole different issue. Link to comment Share on other sites More sharing options...
kcjenkins Posted August 16, 2013 Report Share Posted August 16, 2013 Will do. Link to comment Share on other sites More sharing options...
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