Posts by casualorca5

Brandon Jackson4 said:If a small business owner is out on sick leave for more than 42 days and receives payments from CMS directly into their bank account, should those funds be recorded as income in the KPI?

Thanks.

No, they aren't. It isn't considered taxable income.👍

Christian Cruz41 said:So, does that mean we aren't using the KD form this year?

The KFC form is still valid.
It goes along with the CDC, though I suppose it's unclear if the CDC handles physical paperwork.🤔

Eric Adams2 said:Greetings, everyone... I find myself a bit stuck on how to properly tally up the income tax and surtax for a sole proprietor when filling out the DOH form. When I look at my tax statements, I see account 1430, but it seems to only reflect the data from 2017—is that correct, or am I missing something?

Account 1430 was paid in 2017, similar to how an employee W-2 works, though you'd subtract any interest penalties. At least, that is how I presented it. I suppose there have been various interpretations in previous years.🙄

Brenda Chase3 said:Personally, I wouldn't list this in the sales tax reports or record it as if there were a transfer of tax liability when that isn't actually the case; those aren't valid elements on their invoice. You've already paid their sales tax since you mentioned they charged it directly on the bill. I would simply book the standard entry as a total expense (using the USD exchange rate) and leave it at that. If I'm off base, feel free to correct me, but that’s how we handled things whenever an invoice looked incorrect. Think of it this way: if you report it in your tax filings but they don't report it on their end, you're going to run into trouble with the IRS. Both sides have to report the invoice identically. The auditors might come knocking asking why you reported a tax liability that they didn't, and then they'll just tell you that you shouldn't have filed it because the invoice clearly shows their local sales tax rather than a transfer of obligation.

I suppose I'd just book it as an expense without tax, or maybe as a capital asset.
Class, for example, 4... / supplier 22...
Don't submit any sales tax filings, nor should they be included in the tax returns.
The issue is that you aren't eligible for the sales tax credit.👍

redgardener52 said:Hi there!
I could use some help. I have an invoice for goods purchased from Austria. Both our tax ID and theirs are listed on it, but they actually charged us sales tax. What should I do about this invoice?🤦

Thanks!

Request a new one showing the tax liability transfer.😁

Timothy Torres3 said:Hello there; I’m honestly not entirely certain if I’ve landed in the right thread here. I run my own small business, and since I haven't registered for sales tax, I assume I'm just being taxed on my income, correct?
Here is my dilemma: I have spent the entire year being incredibly careful to ensure my total amount to Invoice doesn't exceed the $300,000 threshold so I can avoid being forced into the sales tax system. But now, my accountant is telling me that they don't care about what I've actually invoiced—they care about the actual cash hitting my bank account. As it stands, with a deposit that cleared this morning, my total incoming transfers for the year have officially hit $101. Does the government look at the gross revenue from the services provided (what was actually Invoiced), or are they looking at the raw cash flow (the difference between what comes in and what goes out)?

On a separate note: if I am indeed forced to register for sales tax, how much of a massive headache am I looking at? Am I going to end up with significantly less money in my pocket at the end of the day??

Dammit! This is the first time in my life I’ve felt genuinely angry that someone actually paid me ten days ahead of schedule!!! To hell with them, honestly.

It's based on completed deliveries of goods and services.
Not what was collected.
Check sections 39 and 40 of the Internal Revenue Code; certain transactions aren't counted toward the value of deliveries $100000. The sale of capital assets doesn't count either.
Enjoy the holidays 👍

Has anyone dealt with filing Form DI before? I'm getting an error saying the book value at the end of 2015 doesn't match the start of 2016. Everything was fine until now, I guess.

stormybadger8 said:When's the deadline for filing that e-filing form?
Is it February 28th? 🤔

I'll probably file it before HHS, and just attach the confirmation from the e-filing system as an exhibit.👍

Henry Edwards33 said:Can someone explain why exchange rate differences aren't a thing for sole proprietors anymore?
A colleague just told me her advisor said she can't record exchange rate gains or losses during the acquisition phase because there’s always going to be some positive or negative fluctuation by the time the actual payment happens. Now she's saying the whole accounting setup needs to be overhauled.

Why did this change, and what’s the new way we’re supposed to handle this?

The internal audit report? So does that mean we have to redo the sales tax filings and the quarterly reports too?

Olivia Cruz86 said:Well, we just ran it through expenses—without the sales tax... but since the legal seizure didn't actually go through, they're sending the money right back to us..

I suppose I would just record that as income, without sales tax.
The interdependence of income and expenses☕

Olivia Cruz86 said:I seriously need some backup here!
So, we just got hit with a refund on our books—it’s basically an unused retainer from a legal collection process we ran.
What’s the best way to record this?
Do I just toss it straight into receipts?

Well, how did you record the initial retainer?

gentlesailor17 said:Man, you guys are just absolute saints when it comes to scoring free labor.

:klap:

I am not downplaying anything, nor am I sending anyone a check.☕
Why complicate things?😁

Nancy Jones said:Hi everyone, I'm working on submitting my first VAT regulations filing regarding owner daily allowances, and according to the NPR guidelines, the filer code should be 5—representing other business entities.
However, the system keeps throwing an error at me, and it actually lets the submission go through if I use code 2, which is for individual taxpayers...
Is it actually okay to just proceed using code 2 instead?

I used 2👍 No problem

Chloe King4 said:So, I just picked up some machinery from China for 20 $0.00 through a company.

How much tax am I looking at here?

And do I actually get any sort of tax refund once I've paid my dues?

You'll receive a customs declaration,
which should list any duties and definitely the sales tax.
Customs goes toward the machine's cost basis, while the sales tax is handled in your monthly filing.

Nicole Lee6 said:When a small business owner buys a personal vehicle from an individual, does that specific tax they have to pay get rolled directly into the car's acquisition value (when filling out the DI form)?

Yes, and even the notary fees...

Dana Jones77 said:Thanks a lot. So, just to be clear, in my specific case, I won't be paying that $2 difference in Sales Tax? And I'm assuming I can't even try to claim a deduction for it, right? Or how would the math actually shake out for me? Also, obviously, Switzerland isn't part of the European Union. Does that factor into this at all? Thanks!! 👍

You can claim the input tax. You just handle the monthly Sales Tax settlement.
Regarding the export paperwork, it’s probably best to consult with a customs broker,
and make sure to verify your EORI number.......

Dana Jones77 said:Hey everyone!

My US company (let’s call it Company X, and we're on a Sales Tax registered system) is about to start exporting food to Switzerland. My firm, X, will buy goods from a local US supplier, Firm Y (also Sales Tax registered), and then export them to Firm Z, which is based in Switzerland. I need to figure out my tax obligations here—specifically, what am I actually paying in Sales Tax?

Here is the breakdown:

X buys food for $100 from Firm Y
- Sales Tax $25 (25%)
Net cost without Sales Tax: $80

X sells the food to Firm Z for $200
- Sales Tax $50 (25%)
Net amount without Sales Tax: $150

So, I end up owing the government $25 in Sales Tax, right? And once it hits Switzerland, I either deal with zero customs or just pay the Swiss Sales Tax on the invoice amount.

Does the IRS actually care about the granular details—like specific freight forwarding fees, trucking costs, gas, lodging, meals, drinks, etc.? Or does the US tax authority mostly just care about the final invoice sent to Firm Z in Switzerland? I'm asking mainly regarding Sales Tax, though obviously, I know I have to book all export-related expenses.

Thanks a lot.

Best,
Dana Jones77

Exporting goods is exempt from Sales Tax, so you don't charge it.
Because of that, the tax authorities mostly care about the Bill of Lading and the Customs Declaration.
Talk to your freight forwarder about the paperwork; it's probably best to verify everything before the export happens.

Olivia Cruz86 said:So, I just went ahead and paid for some voluntary health insurance—you know, like a full preventative checkup policy—for my boss, who’s basically running his own thing as a freelancer. Now I'm stuck wondering, how on earth do we actually write this off for tax purposes?

Thanks!

Sorry, I don't really feel like digging through the tax code right now.
But I suppose that checkup isn't a requirement for his business operations,
so it would likely be a non-deductible expense for a freelancer / just like supplemental health coverage. ☕

Jose Turner57 said:?

Legal Case 93/14

-employment status is suspended, not terminated ??
-the employer can de-register the employee, provided they don't sign contracts with other employers

What does that actually look like in practice??
For the employer, the easiest route is just to de-register them from Social Security and Medicare & Medicaid Services via a mutual separation agreement.
Then, if they ever show up again, just re-enroll them.☕

Edward Stewart said:Does anyone here have any firsthand experience dealing with those mandatory dues for the local Chamber of Commerce?
I received a call today from an agent at the IRS, and they’re claiming my 2015 tax filings are incomplete because this specific fee wasn't accounted for. It’s quite baffling, really, because in the fifteen years I’ve been operating, I’ve never once had the local Police Department reach out or send a single notice regarding this—not that I mind, as all my filings and annual reconciliations have always been handled meticulously and passed inspection without a hitch.
I’ve spent some time digging through the legal codes, and according to the current regulations and my specific business classification, my company falls squarely into the third tier of obligated taxpayers... though I find myself wondering, has there been any recent shift in how these categories are applied? (My industry code is 62.02).
There was a period back in the day when my accountants handled the entire filing process for me, so the whole Chamber of Commerce issue never even crossed my radar. It makes me wonder: was this simply an oversight by the agents at the IRS who were processing my previous returns?

Whose mistake it was doesn't really matter now.
Just calculate the Chamber of Commerce dues and take it to the IRS; then it's settled.😛
The issue is that you'll be stuck paying those dues moving forward.👎
Maybe the area where you operate established a new Chamber of Commerce last year...
maybe certain industries were folded into an existing one...........☕
It wasn't mentioned last year.
It’s easy enough to run a business when you have such light burdens.