are web based business controlled by the IRS? how?

Question

anyone can have an overseas bank account

Answer 1

The IRS does not really control any business, it just collects taxes on net profits. Web-based businesses keep books just like any other business, and the IRS can audit them just like they do to individuals.

In general, if the business is not incorporated the owner(s) have to claim the revenues, and may write-off business expenses with their personal tax returns.

The average Joe out there with a blog and Google ads is supposed to claim any earnings and pay taxes on them.Most people do not earn enough enough to cover hosting fees and other costs so they end up with an operating loss, which usually aren't taxed.

There are a lot of little rules and regulations when it comes to accounting, and if you have questions, hire an certified accountant. They will do all of the work for you and become liable if there are any errors on your tax return. Also, most of them are quite creative and can manage your books in ways to save you money.

Answer 2

Web based businesses are not "controlled" by the IRS any more than any other business is. If you are a US citizen you pay US income taxes regardless of where you operate your business, pure and simple.

The IRS employs sophisticated data mining and statistical analysis techniques to verify the income claimed if there are any questions. And don't think for a second that hiding your profits away in an offshore account will help for very long. Many foreign countries share data with the US on deposits by their citizens in exchange for information on their citizens residing or doing business here. And for those that don't -- the Cayman Islands for example -- the IRS simply rolls out their sophisticated tools to determine what your likely income is and levies the tax based upon that income. It's then up to YOU to prove them wrong either at audit or in court.

One of the simplest tools that the IRS uses is called a Lifestyle Analysis. They look at your lifestyle -- your home, cars, the schools your kids go to, how much you entertain, etc. -- and ask the question, "How much money would it take to live that way?" If your reported income is within that range, you're OK. If not, you'll have some difficult questions to answer.

Answer 3

Business' aren't controlled by the I.R.S.- the state collects taxes on what you sell. You pay the I.R.S. at the end of the year on the amount of income you've made after your business deductions by a percentage scale in their tables. If your thinking of by passing it, good luck-eventually you'll find they will know who you are and send you a greeting. Some are still getting away with it-it's just a matter of time till your caught. Their are many loop holes or write-offs that are legal that people don't take advantage of-you have to read and study or find yourself a good C.P.A., but that takes more bucks then you'll probably have at first. Take business courses or tax law-or see H.R. Block.

Answer 4

Two years ago when I published my website. I hired 5 people to advertise for me. I registered my internet business with the IRS because I paid employees to advertise. My plans were start small and generate income from sales to go into business localy didnt happen. I didnt have the income to advertise my website by getting a domain name so I paid the people I hired and shut everything down a year later also my dropshipper went out of business also ouch!!!! Look at like this people make money off of ebay. What do you want to bet that a majority of ebay members are not registered with the IRS and they have their own Ebay store. Hope this helps

Answer 5

I am not sure what you mean. The IRS doesn't "control" any businesses.

By law, you must declare your income and pay taxes regardless if the IRS knows about it or not. Just because you don't receive a 1099 or W2 doesn't mean you can ignore the income when you file a return.

Answer 6

you could browse eBay and search for purses similar on your and see what the going fee is and skim their feed backs and see what number are being offered. once you've your own internet website you could continuously promote some on eBay to get some commercial in. purely the individuals who you supply your link to be sure about it or those absolutely searching on your product - notwithstanding the completed international shops ebay. Agreat thanks to direct human beings on your inner most internet website. in case you promote purely one ebay - bear in options each and each and every of the costs they have and be sure you upload that on your pricing. They charge you to list - then charge a share of your revenues - then paypal takes a share of the over all volume that is going via them. A triple whammy that you'll be able to free on in case your no longer careful! good success!

Answer 7

I assume they do, they control every thing else.But I'm not sure how someone would have to send in the info.

Answer 8

They check your bank account! STU