Carol Price4 said:My accountant is talking nonsense—credit card sales definitely fall under tax reporting rules, and that's clearly stated in the law and all the official guidelines. You won't see any issues until the IRS shows up at your door, and once they do, you're looking at a massive fine—thousands of dollars, easily—so then we'll see how "no problem" it was...
Great, so now I have to deal with tax reporting for every single card swipe... luckily I haven't had anyone pay by card yet; it's all just direct transfers to my business account so far. I need to figure out how to categorize these transactions since I run two different businesses out of the exact same office space. I don't have walk-in customers paying at a counter; everything comes through bank transfers one way or another. Because of that, I don't even own a card reader or a POS terminal, at least not in the physical sense.
How am I supposed to format the invoice numbers for payments made online—specifically through the web forms on the PayPal site?
I brought this up with my accountant, but they just brushed me off. They told me I should handle it exactly like this because some massive corporation does it the same way and hasn't run into any issues. That’s easy for them to say, since I’m the one not seeing any of that cash. On top of that, I don't even process credit cards through my own web shop. My site is basically just an order form. Once someone places an order, they get sent a link and all the payment info, then they go through a secure portal hosted by a major third-party processor like Stripe or PayPal to actually pay.
I only take payments through direct bank transfers right now, but since I just added the option to accept credit cards exclusively through my website, I wasn't sure if I needed to deal with sales tax registration or formal point-of-sale reporting for those transactions. So, I hit up my accountant to see if I actually need a register. He told me he’s dealt with plenty of businesses in this exact spot. Apparently, you just have to file a formal statement explaining that you don't need a physical register because everything is processed online via bank transfers. I took that paperwork down to the local IRS office myself. The clerk read through it and gave me a nod, basically saying they’d filed it. To be honest, I don't think she actually knew what she was looking at either, but hey, it should be fine.
I finally switched over to online card payments, but I’m still staying completely hands-off when it comes to actual cash since everything lands directly in my business checking account. My accountant told me I needed to draft some kind of formal declaration about how the money flows and take it down to the IRS. So, that's exactly what I did. The folks at the office took it without any issues, so I'm assuming everything is squared away.
Right now, I don't have to deal with any of that sales tax or digital receipt stuff because all my service payments go straight through my business bank account. But I'm thinking about starting some online sales where customers can pay by card using PayPal. The actual transaction wouldn't happen on my site—it would be handled entirely through PayPal's own checkout pages. Basically, I just send the customer a link, they fill out their info and pay, and I never even touch the cash or see the credit card details.
Does this mean I suddenly fall under those strict IRS reporting requirements?
If it does, I'm totally lost here... am I supposed to start reporting everything, including the old service invoices I've been doing via direct bank transfer, or just the new ones coming through PayPal?
And how am I even supposed to log these PayPal transactions if there isn't an automatic way to sync them up?
neonsurfer13 As I have previously observed: I would truly appreciate it if someone could take a moment to clarify a few things for me.
If someone sends me money but then pulls out of a business deal, I typically just wire that amount back to their account after a few days, labeling it either as a mistaken payment or a contract cancellation. It’s the same process if I’m the one who makes a payment and the other party returns the funds to me. From what I gather, these types of reversals shouldn't be recorded in the IRA, but they should be logged in the KPI? Is that the correct way to handle it, or are these transactions supposed to stay off the official books entirely, perhaps just being documented via a separate explanatory memo instead?
How exactly should we be recording invoices for services received from the European Union into the general ledger versus how they should be handled within the ERP system? For instance, I made a payment using my checking account. $33 (Which, of course, is the pre-tax amount). So, would that figure... $33 I’ve been staring at this tax filing form for a while now, trying to wrap my head around how to input these figures correctly. Specifically, when I'm filling out the section for sales, should I be entering the net amount under "base amount" and then the total including sales tax under "account amount with tax"? Or is the intended workflow to enter the gross amount as the base, manually calculate what the tax would be, and then put that calculated total into the "account amount with tax" field so I can eventually claim the credit? Mathematically, if I'm not mistaken, both methods should ultimately lead to the exact same bottom line. However, I want to make sure I'm following the official IRS guidelines to the letter. Which approach is actually considered the correct way to handle this?
How exactly should that be structured within our key performance indicators?
I made a bit of a mess during my filings earlier this year. I ended up making an error when recording some entries in the system, which means my VAT returns for that period are now inaccurate. Essentially, I accidentally logged the exact same input invoice twice in a single month—it was a bill from an international vendor. I just caught the mistake, and now I’m trying to figure out the best way to clean this up. How should I handle this? Should I include a formal explanation within my tax return, or is there a better way to fix the actual bookkeeping? Specifically, do I need to file an amended VAT return to offset the double entry, and if so, what is the proper procedure to balance everything out?
Thanks in advance!
In that case, we’re looking at transient items. Just draft up a formal explanation for the IRS and include copies of those statements clearly showing the erroneous payment and confirming that it's strictly a refund.
When you're entering this into the system, remember that you need to convert any foreign currency using the Federal Reserve's mid-market exchange rate from the actual date on the invoice. You should enter the base amount—that is, the total before taxes—which will then be categorized as an allowable expense within your KPIs. As for the sales tax, don't include it in the main entry; it’s only recorded in the tax forms as both an input credit and a liability.
You really need to sort this out within the December 2016 sales tax filings, because that final return for the year is specifically intended for correcting any previous errors. My suggestion is to amend that last filing and resubmit it—I’m assuming you’ve already sent it in, given that the deadline was back on January 20, 2016. Once that's done, just give your contact at the IRS a quick heads-up that you've filed an amendment so they can pull the updated version into their system.
But that December form was probably processed ages ago. You really think I can just go in and change it like that? And how exactly am I supposed to do that on the form? How do I actually correct the amount? Do I just subtract it from the totals in II1 and III1 (since the invoice is from a company outside the US), or is there some other way to handle it?
1. If someone sends me money but then backs out of a business deal, I just send it back to their account a few days later, labeling it as a mistaken payment or a canceled contract. Same thing happens if I send money and they return it. From what I gather, this doesn't go into the sales tax ledger, but should it be recorded in the internal expense tracking? Is that right, or do you just document those kinds of transactions in a separate memo instead of logging them anywhere?
2. How do I record invoices for services received from the European Union in the sales tax ledger versus the internal expense tracker? For example, I paid for something via my business checking account $33 (which obviously doesn't include sales tax). For that amount $33, do I enter it in the ledger under both "base amount" and "total amount including tax"? Or do I put the actual amount under "base," calculate what the total would be with tax, and put that figure in the "total amount including tax" field, then just claim the tax credit separately? Both ways end up at the same number eventually, but I want to know which way is actually correct.
And how should that look in the internal expense tracker?
3. I made a mistake entering data into the sales tax ledger earlier this year, which means it was carried over to that period's tax filing. Basically, I accidentally entered the same two incoming invoices twice in the same month (they were from an out-of-state company). I just caught it. How do I fix this mess? Do I need to explain it on my tax return, or more importantly, how do I handle the actual invoices—should I try to offset it in a new tax filing, and if so, how?
How long does this kind of thing usually last before things actually start feeling normal again? I mean, how long am I going to have to baby my movements? I’m obviously not talking about heavy lifting here, just basic daily motion... because right now, I’m being incredibly cautious with every single move I make. Once this whole mess is finally over, should I be looking into physical therapy or specific exercises? And if so, what kind of stuff actually works?
Thanks for the heads-up. I'm playing it safe now and keeping up with my physical therapy exercises. So, looking ahead—say, after about a week or so—should I be starting any light workouts? And if so, what exactly am I looking at? Maybe there’s a link or something out there. Thanks
Last week, a few buddies and I were lifting some heavy gear, and out of nowhere, my lower back just seized up right above my glutes. It was brutal. I couldn't even move—I had to practically crawl my way to the nearest chair. The pain is sharp, and it’s shooting all the way down my legs. After three days, things calmed down a bit, and I popped four Aleve during that stretch. Then, on Sunday, I went for a two-hour walk, which was probably a huge mistake. Yesterday, I went to squat down to tie my shoes and—bam—hit with that exact same sensation. I almost ended up paralyzed by the pain again. I’m back on the Aleve (this is my third dose since yesterday morning), but honestly, nothing is helping. I'm walking like a damn robot right now; it takes me at least a full minute just to cover five feet.
Anyone got advice on what I should actually do here? Or am I just stuck waiting for time to do its thing? Oh, and yeah, I've been rubbing some sports injury gel on it.
Carol Hill66 said:Look, I personally get about four or six sprays a month. If you want more, just ask your doctor. If they can give them to me, there’s no reason you shouldn't be able to get yours too. My GP has never given me any grief or made me feel like I was doing something wrong.
My doctor explicitly said we could use either Imitrex spray or the pills. Since my primary care physician wasn't working over the weekend, we ended up paying full price for the spray at the drugstore, though they did sell us the tablets too. We went back later to get the prescription filled so we could get some money back, and honestly, we were blindsided by how our doctor reacted. First off, he claimed he can only write a prescription for one or the other once a month. He basically said he could prescribe the spray and that's that, and he got pretty worked up when we expressed our surprise. When the guy who is supposed to be helping and advising you reacts like that, it leaves you stunned. Instead of giving advice and de-escalating things, he just loses his cool and ends up stressing out the patient. I think I need to find a new doctor, but you can't just wander around town looking for a new clinic, and you aren't supposed to switch constantly. But seriously, the healthcare system here isn't anything like what you see in the US. Over there, a primary care doctor actually acts like a primary care doctor. Here? It feels like dealing with some random clerk who can barely even interpret a basic diagnosis.
BTW: please shoot me a DM with the name of your doctor and where their office is located.
@Carol Hill66/">@@Carol Hill66 So you end up blowing through both sprays just to deal with a single attack... I honestly don't get why they only allow two sprays a month. These headaches don't just show up once a month on schedule (well, at least not with Clusters)
I still don't get why they insist on making these medications in such tiny little packages. People dealing with migraines or cluster headaches aren't just dealing with a quick zap; we’re fighting through these long, brutal cycles. But then you look at the prescription, and it's only approved for once a month, and even then, you've only got enough for two doses. It makes zero sense.
One of my family members deals with cluster headaches, and they just got prescribed Imitrex spray and pills. Honestly, the amount they gave us was a total joke. The spray is a single-use thing that only lasts for two doses, and they only handed over two tablets. It caught us completely off guard because if you actually suffer from clusters—which are basically like migraines on steroids—it’s not just a one-day thing. These attacks can drag on for weeks or even months. I have no idea what the logic is behind providing such a tiny amount.
So, I'm curious, what does the typical packaging for Imitrex look like? Is it always that little spray, or is there more to it?
I spotted that Excello Ah 8122 massager in the Elipsa catalog. Can anyone tell me where exactly I should be using this thing? Also, would it actually help with headaches? Mine are probably coming from sitting at my desk staring at a computer screen all day.
Sandra Parker3 said:When a parent gifts a car to their kid, there isn't a special tax on the transfer, but if the child is gifting a car back to the parent, then you're looking at a special tax on passenger vehicles. How much would that even run me? And why even bother gifting it? If the car is in their name, just leave it that way. During a messy divorce, gifting assets like that can easily be challenged as some kind of shady maneuver to hide property during the split. They should just get the car looked at and change the locks—find someone else besides the dealership, I'm sure there's someone who won't charge an arm and a leg. Besides, what kind of car are we even talking about here? You're being a little sketchy with this, and what about the state inspection? Only the owner can handle that, and they can't do it without the actual vehicle being there. 😎
The special tax is 5%, right? I'd gift the car to my dad because, with all the headache this marital dispute is causing, I just don't want that car sitting around me anymore. Since nobody has the keys, the thing hasn't been driven in over six months anyway. It's a Ford Focus. I have no clue when the registration expires; maybe that's why they're looking for a way to make this happen now. Look, their situation with the car is the least of their problems. The daughter-in-law won't even let those old folks into the house (even though it's THEIR house). They're dealing with a whole mess of issues I already laid out in this thread:
She’s got all the keys. It’s not even like she’s driving the thing—she just refuses to hand over the keys and lets the car sit there rotting in front of the apartment building for six months straight. Honestly, I don't get how they couldn't just get the keys back from her, but that's the mess they've managed to make for themselves. Who knows if the keys are even inside the apartment at this point?
They checked about the lock, and the mechanic told them they'd have to have the car towed there, and apparently, the whole job is going to run them about $667.
On another note, does anyone know if there's a gift tax on transfers from a father to a son?
I’m asking on behalf of some family friends. I’ve actually been on here months ago looking for advice for them, and now they’re back with another mess. So, their son is having major marital issues, and one of the biggest sticking points is that his wife is refusing to hand over the car keys. This has been going on for over six months now. The car is technically registered in his name, but his father is the one actually paying off the loan through Chase. I don't know how they set up the paperwork, but that's the situation. Now, the father wants to take possession of the vehicle, but since the daughter-in-law is hoarding the keys, he's stuck. The son is perfectly fine letting his dad use the car however he wants, but the old man has no way to actually get behind the wheel. First question: what’s the easiest way to transfer the title to the father while keeping the costs as low as possible? Second thing—and this is the headache—how do you even start the car if you don't have the keys? What can be done here that won't absolutely wreck them financially?