So, quick question—do I need to file my Aggregate Report for services provided to a firm over in Canada by March 20th, 2017 (assuming the invoice was sent to them back in February)? This is even though they haven't actually paid me yet! Or am I supposed to just wait and bundle it all together with the VAT return once the money actually hits my account?
So, we put an invoice on the books back in February for some services provided by a firm over in Mexico. As of right now, the bill hasn't actually been cleared yet. Regarding the aggregate tax filing—when does that actually need to hit the IRS's desk? Are we talking about the period when the payment actually clears, or do we just have to file by March 20th regardless of whether the cash has moved or not?
placidlynx92 said:I include them for 12/2016, because the IRS also charges those prepayments against the December 2016 liability.
Ugh, okay, now I’ve got two different numbers staring me in the face... and honestly? I have zero clue which specific payments I should actually be logging here...
So, I’m staring at this CDC form and my brain is basically melting—regarding the tax and surtax payments—should I be listing the stuff actually paid during 2016, or am I talking about those advance payments made for 2016 (you know, the ones wrapped up by January 31st, 2017) that specifically cover the December 2016 period?
So, how the hell do you actually close out an account held in dollars? Like, let's say the invoice is sitting at $320.00, and on the day we settle it, everything gets converted into USD based on the Federal Reserve's mid-market rate. The idea is that the payment should clear in dollars using the exchange rate from the actual day the money moves. But what happens if things get messy and the amount paid is either too low or too high? If they shortchange us, do I just mark off part of the invoice? And if they overpay—where does that extra cash even go? Is there any way to stop this headache before it starts?
Mark Torres45 said:Everything you wrote sounds correct, but you really have to watch out for what *kind* of services you're talking about. For example, if they are related to real estate (like hotel services), the tax liability doesn't transfer—you'd actually have to charge VAT. Also, definitely keep that note about the VAT calculation based on fees collected. You're issuing the invoice following our domestic regulations, after all.
Hey everyone! So, I’ve gotta send out an invoice to a company over in Austria for some consulting services (basically legal-to-legal stuff). For my sales tax filing, does this go under section I.4.? Does the system automatically pull that into the Collective report if I mark it as services within the European Union? The whole invoicing thing is tripping me up because we haven't dealt with foreign companies before, so we've never actually had to cut a bill like this. I'll be billing in USD, but I'll include the conversion to Euros based on the Federal Reserve exchange rate—no sales tax applied, obviously. I'll make sure to note: "Reverse charge per the Value Added Tax Act, Section 17," plus both our tax IDs, and just run the rest like any other standard invoice. Quick question though—do I leave the "sales tax calculated on fees collected" part on there, or should I just scrap it entirely? And for the paperwork, am I just filing the standard sales tax return by March 20th, and then hitting them with the Collective report at the same time?
ruggedlynx63 said:There’s no obligation to file a return manually, because the IRS will just calculate everything themselves through their own reconciliation process...
Quick question for anyone here who actually knows their way around tax filings—maybe someone's an expert or just lives this stuff? So, say an individual works part of the year, then hits a dry spell being unemployed, and then finally lands a new gig with a different employer toward the end of the year (back in 2016, specifically). Does that person need to manually file an annual return, or is the IRS just going to handle all the math and paperwork automatically?
I've got a quick question regarding tax prepayments and income tax withholdings since we ended up overpaying a massive chunk of income tax and withholdings last year—which basically means we're sitting on a huge refund right now. I was thinking, instead of just waiting for the check, can we just apply that overpayment toward our future tax prepayments? Like, can you actually sit down and hammer out an agreement with the IRS to make that happen, and if so, what’s the play here?
I’ve been scratching my head over how you guys are handling passive interest from the bank in your filings. Is it cool to just list it off KPI—like, tucking it under 2.5—and then just dump all those other miscellaneous receipts into the PPI form?
So, are we looking at the new payroll calculations kicking in starting January 1st, 2017—meaning they’ll actually hit the December 2016 checks? Or what's the deal?
So, I’ve got this situation—we bought some supplies using an account under a sole proprietorship's name, but the actual payment went through my wife's personal debit card. Now, here's the kicker: can we actually record that expense in our petty cash fund and then just pull out cash from it to square things up? We don't even carry business cards at our office... thanks!
casualorca5 said:Well, how did you record the initial retainer?
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 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?
So, I’ve got this scholarship agreement set up at $533 per month, signed back on September 1st, 2016. When it comes to the purpose of payment, do I just write "scholarship" and leave it at that? And about those monthly payroll tax filings—I'm starting the actual payments on September 15th, so does my first filing go through until October 15th, 2016? Is there anything else I need to watch out for regarding scholarship stuff?
Carol Price4 said:You’ve gotta notify the IRS if you're moving away from handling cash—just like when you first set everything up, you'll need to update your status to closed and send over that XML file.
That way, they’ll officially know you aren't doing business with cash anymore...😉
Look, we're a service-based business and we finally just uninstalled that tax software we had sitting on our office computer. Since those companies are constantly pushing updates—and obviously charging an arm and a leg for them—we decided it’s just not worth the headache. We're strictly doing everything through bank transfers now, so why pay for a subscription for software we haven't even touched in over a year? I was digging through the settings in the fiscalization program and I saw this little checkbox that says "Close Business Location." Is that the magic button right here? I don't want to accidentally wipe out everything since we're still officially registered for reporting, but I need to make sure I don't mess anything up.
Kate Adams7 said:If you're billing a company registered here in the States, it’s just your standard invoice—base amount plus sales tax, assuming you're set up for it. If you're invoicing a firm in the United Arab Emirates, I'm honestly not 100% sure since they aren't part of the European Union, so they probably count as a third-country entity. I once handled some legal service billing for a client over in the US, and we applied the reverse charge rule under the local tax code. On the tax forms, it goes right into section I.5., and the IRS cleared it without any issues.👍
No way, the invoice is going to be issued to a private individual from the United Arab Emirates! I’m pretty sure there’s no tax involved, and you’re supposed to write "Not subject to taxation according to Section 24, Paragraph 1 of the Value Added Tax Act!" on the bill. In my book, wouldn't that also go under I.5. for services provided outside the European Union?
So, I need to invoice a client for some legal services—he’s technically from the United Arab Emirates, but he’s running his business here in the States. Now, get this: he’s telling me to bill him in USD and says he’ll pay using a US-based account he has set up here. Does anyone actually know how that invoice should be structured or how the bookkeeping works for something like this? Honestly, I rarely deal with international clients, so I haven't really dug into the weeds of the tax side of things... thanks!