Posts by Keith Martinez5

Carol Price4 said:Other; 😉

Thanks 👍

What’s the best way to handle my billing setup in Silicon Valley if I’m planning to split the payment—like, paying some of it in cash and the rest via credit card? Thanks! 🙂

Keith Martinez5 said:I actually went to check my account right after reading your post, and as of July 13th, 2016, it looks like the refund went through—but I still haven't seen any paperwork from the Treasury. It's strange... in the past, I always received the official decision first, and then the money followed shortly after. 🤷

I gave the IRS a call, and the agent was actually really helpful—he told me that they aren't issuing written tax determinations in hard copy this year. So, whatever we're seeing on the PKK is essentially the final word. I’m just a little stuck on the logistics, though—like, what’s the actual deadline if someone wants to claim their refund? Does the clock start ticking from the moment it shows up on the digital statement, or does it work differently now?

stormybadger8 said:Wait, do they even mail them out? 🤷
I haven't seen mine either, but my bank statement shows the IRS actually sent the money back... and it's been almost a month. Seems pretty weird for the paperwork to take that long to arrive.
Then again, why would they dump money into your account if they hadn't processed and approved the return in the first place? 🤷

I actually went to check my account right after reading your post, and as of July 13th, 2016, it looks like the refund went through—but I still haven't seen any paperwork from the Treasury. It's strange... in the past, I always received the official decision first, and then the money followed shortly after. 🤷

Has anyone else still waiting on their tax refund notice from back in 2015? I haven't seen anything hit my mailbox yet—just starting to get a little anxious about it...

Nicole Lee6 said:Well, looking at the amendments made to the regulations after December 31st, 2014, they completely failed to correct that specific article to align with the current law. It’s a mess. Honestly, I have no clue what the move is here, but the folks over at Sinesys dropped the R-2 entirely starting January 1st, 2015, and switched to just stating "calculation based on paid consideration."

So, basically, am I right to be pushing back? Am I correct in thinking that I don't actually need to clutter my invoices by citing which specific section of the VAT Act justifies the "calculation based on paid consideration" note I've included? 😠🙂

But shouldn't the software be designed to automatically stay in sync with legal changes? To me, it feels like it’s Sinesys's responsibility to ensure their program follows the law—I mean, that's how it's always worked, and we're constantly buying upgrade modules just to stay compliant... they really should have kept that unfortunate R-2 feature if that's what the law requires. Or am I wrong?? Did you run into an audit or something to figure this out?

Richard Howard55 said:Just to wrap this up...
.... The IRS can cross-reference fiscal data using KPI reports and Form 1040. They basically just compare the cash payment totals from the fiscal records against column 5 of the KPI and field II.1 on Form 1040 (cash receipts).
And that’s really it. Case closed.
Well, almost. 😁 Because there might be a stray receipt flagged as "fiscalization-other." In those cases, you'll have to explain how that specific entry impacts the reported figures in both the KPI and the Form 1040 cash receipts section.

Huge thanks to Richard Howard55 for the advice—not just on this topic, but for everything he's shared... Honestly, if the folks over at the local Police Department were even half as well-informed and could offer a bit of practical guidance, I think we'd all be having a much easier time navigating this stuff.

Richard Howard55 said:And this shouldn't have been done at all.
You can't use tax compliance law to verify receipts. That's apples and oranges.
Under tax compliance law, transaction accounts can be logged, but we have our own hurdles. Plus, the "miscellaneous" category is just a black hole for tracking.

This wasn't really a "learn from your mistakes" lesson in terms of gaining new knowledge. It's more of a lesson—maybe think twice about that "everyone's happy and satisfied" part—to ensure that next time, nobody can pressure you into doing what you just did just to keep the peace because you doubted your own expertise.

Richard Howard55, I really appreciate your perspective here👍,but I'm still entering card payments under the Regional Office category. Regarding what you mentioned about miscellaneous entries—I actually had one invoice where part was paid by insurance via the Regional Office and the rest was cash from the client. Synesis told me to just dump it all under "miscellaneous" just so the receipt would clear through the system, but it definitely didn't feel like the right way to do things. Anyway, if anyone has a better way to handle this, I'd love to hear your thoughts...

Mark Torres45 said:I really need some help here! I’ve been recording all our credit card sales as direct deposits into our business checking account since that's where the cash actually lands. But when it came time for our tax filings, the IRS agents called me out. They're insisting that every single cent we ring up through the POS system needs to be booked as cash receipts. Honestly, it makes zero sense to me—why would I call it cash when the money hits our bank account directly? Who's actually in the right here, the tax authorities or me?

I ran into this exact same headache last year—I ended up having to reclassify everything from bank deposits to cash receipts, which felt completely nonsensical to me. I actually wrote a whole post about it back then... This year, before submitting my Form 1040, I gave the local Tax Department a call. The manager there actually told me to just list them as bank deposits, explaining that when we file with the IRS, we are following the standard tax compliance law rather than the specific rules governing POS systems. She even admitted it wasn't totally clear to them either—honestly, if you look closely, those two sets of regulations seem to contradict each other quite a bit. Anyway, I decided to stick to my guns and record them as bank deposits. Now, I'm just bracing myself for those inevitable follow-up calls from the IRS, but if they push it, I am more than ready to hold my ground and sort it out with them.

Edward Stewart said:I went ahead and did exactly that, and I have to say, even the form on the IRS website worked perfectly on my first attempt 🙂
. It seems anyone who manages to stay afloat and keeps dutifully paying up all those endless fees can afford to bow down, while those who are out of work—or simply don't know how to navigate the system—are left out in the cold.

Personally, I think the most ridiculous tax is the one on timber and forestry resources... it's a total disaster. 👎

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?

Honestly, you should probably take the advice casualorca5 gave you. This was almost certainly a clerical error on their end—under the 2008 Tourism Association Act, activity group 62 was specifically mentioned, so you really lucked out. If they try to come after you for back payments, well, you'll just have to live with the guilt—though personally, if I were you, I'd just give myself a little nod in the mirror every morning and move on. We’re all paying our "protection money" around here too, so welcome to the club!🎉

Thanks, casualorca5 🙂

Back in May, I picked up a piece of equipment that’s going straight into my depreciation schedule. Now, I'm trying to figure out how to properly log this on my sales tax return. In my accounting software, I entered the amount under Section 22 so that I could claim the input tax credit, but looking at the actual form, there's a specific line under "Other Data" labeled "purchase of other long-term assets." Since my software isn't automatically pulling that data through—it's one of those things where you just have to enter everything manually—I wanted to double-check something. Should the amount I enter there be the gross total including tax, or just the net amount before tax?
Thanks!

Brenda Chase3 said:It’s exactly like Brenda Chase3 said. The IRS can ask for an explanation if something doesn't add up, even regarding the debit side of the business account (I had to handle that once about ten years ago for a client). We just explained it to them—clarifying how much was withdrawn as personal income versus how much went toward bills—and that was the end of it. I've only seen them request that kind of breakdown once in my entire career, but honestly, it wasn't a problem at all.

I think you guys are absolutely right—account and vejanka—I’ve never had the nerve to pay for personal stuff out of my business checking account, I just don't dare to... but apparently, it's perfectly fine. Maybe I'm just being overly cautious...

Kate Adams7 said:Honestly, the IRS couldn't care less about what you spend as long as you pay your taxes, but they sure love to nitpick every single cent coming in (between the sales tax thresholds and all that stuff).
In my case, they actually demanded copies of my bank statements for every single deposit under my tax return—which, fine, I get why they'd want that for huge loans or whatever—but they even flagged a tiny bit of interest amounting to $0.46 that hit my account on New Year's Day.
And this was despite everything being perfectly documented through June in the attachments I sent with my filing.

But here’s the kicker... On one of those statements, there was this random deposit that got immediately reversed because someone messed up the reference number, so it showed up on both the debit and credit sides. Then the whole headache started, with them claiming it wasn't listed properly outside of the standard accounting entries, even though you could clearly see it line by line right underneath. During the call, I realized mid-sentence that the lady I was talking to didn't even know how to read a basic bank statement—she was tripping over terms like "debit" and "credit" and rambling about double-entry bookkeeping (which wasn't even an issue here 🤦) and all sorts of nonsense.

I'm registered for sales tax... honestly, I think the whole system here is just way too overcomplicated. When I look at how things work abroad—for example, you can just buy things with cash, inventory management isn't a nightmare, prices can be negotiated... even inspections and audits are usually scheduled ahead of time rather than these guys just showing up like cowboys... man, I'll never get used to it in a civilized society. In a functional system, the IRS should be more of a partner and advisor to the entrepreneur.

Nicole Lee6 said:Honestly, I haven't been recording those because there wasn't a specific key to use outside of the KPI 😬 and frankly, I don't think I'm going to start now.

The reason I'm asking is mainly about my upcoming tax filing and that PPPI form—which, let's be real, definitely won't align with my numbers for this year. I'm just waiting to hear back from the local Police Department regarding some inquiries. According to their logic, you're supposed to have documentation to cover every single cent moving through your existing business checking account; plus, interest is paid directly out of the account without being officially recorded. To me, this whole setup feels pretty nonsensical for a small business owner. As has been mentioned several times on this forum already, once all the business obligations are met, the money sitting in that existing business checking account actually belongs to the owner, not the entity itself. As long as the bills are paid, what I do with my own capital should be my business... at least, that's how I see it, but life isn't always that simple...

placidlynx92 said:👍

Thanks, lady G

Regarding my membership fees for the tourism board, I’ve ended up with $0.47 some interest charges... How should I be booking those? Is it okay to list them as expenses outside of the KPI? (Sinesys)
Thanks!

Reading through all these previous posts, it honestly feels like every single local IRS office in the country operates by its own set of unwritten rules. I’m currently running two different business activities under one LLC—and if you look at them individually, one stays well under the threshold to register for sales tax, while the other definitely hits it. But here's the kicker: since they both fall under the same EIN, they’re treated as one single entity for tax purposes. So, effectively, I'm stuck in the sales tax system 😕

I’m looking for a little guidance here... I have an outstanding invoice from back in 2015 that was actually paid, but I completely missed it—total oversight on my part—so I never officially closed it out. The amount isn't massive, just roughly $83. Since I didn't clear it, it naturally rolled over into my 2016 books. What would be the smoothest way to tidy this up without making a mess of things? Should I just issue a credit memo and record it with today's date as if it were a cash payment, or does anyone have a more elegant solution? Thanks in advance! 🙂