Thanks for the clarification. So, if VAT is calculated on an export, I just list it on the tax return as a domestic sale under section II 3.
From what I gather, when dealing with real estate transactions, VAT always applies, regardless of whether it's a B2B or B2C deal.
In these instances, it all comes down to where the property is located. If the real estate is based here in the US, then VAT is mandatory, no matter who we're invoicing.
I know the main focus here is doing business within the USA, but I couldn't find anything specifically regarding trade with third-party countries, so I was hoping someone could help me out. An export invoice for services was issued to an international client located outside the USA, and a 25% sales tax was applied.
Where exactly does that tax get recorded on the sales tax return? I haven't been able to find a specific field for it... everything I see just mentions the USA.
I'm looking for some quick guidance here. I have to file my sales tax return very soon, and I've searched everywhere online without finding an answer to this specific question.
I issued an invoice to a customer based overseas—not within the European Union, but in a third country...
The sales tax was calculated at 25%, but now I'm stuck on where exactly to report that amount on the tax return.
Looking through the entire form, I don't see any mention of third countries, just references to the European Union. Thanks for the help,
I provided a service at my office to an individual from Canada—essentially a foreign client. I billed him under his full name and address in Canada, and he went ahead and paid the invoice immediately via a local US post office.
Since I’m part of the VAT system, I just issued a standard invoice with the base amount plus tax. I already remitted the tax to the government and recorded it as a domestic sale on my tax return.
Now I'm wondering if I handled this correctly... or if there was something else I should have documented since he's a foreign citizen and an individual... Thanks,
When I went to check the form, it flagged an error stating "depreciation amount must equal purchase value times percentage..." -.
The error doesn't make sense—it's the final year of depreciation... and I've already seen people on the forum mention that you guys don't actually care about these specific errors since they're just informative and the result is just a poorly coded tax program.
But even after a full day, my status is still showing as "processing." Every time I try to refresh the status, I get this message: "Error refreshing status"
Did your ID form actually go through, even if you submitted it with that same informative error? How much longer should I be waiting for it to process? How long did it take for yours? And what does "error refreshing status" actually mean... Thanks for the help,
cosmictinker24 said:So, I guess... do I actually need to compile a full itemized list of every single one of those deposits hitting the bank account that aren't considered income (those pass-through items), or is just stating the total amount enough? Also, I have this one erroneous wire transfer that was sent back to us. Should I be attaching documentation for that to the IRS, or is it fine if I just list it under 2.5.?
thanks
Starting this year, there’s a new rule where the agent doesn't audit or dispute our tax filings anymore; they're basically required to accept them as we've submitted them. From that perspective, you shouldn't really need to attach anything extra to the filing. Still, I'm planning to include a breakdown of the bank account activity—things like paid invoices, interest earned, transit items, and so on... just to be safe.
cosmictinker24 said:The following should be attached to the tax return:
Form P-PPI and Schedule V, which details business receipts and expenditures.
Regarding pass-through items and misapplied credits—should those be recorded under section 2.5, "Other Unspecified Income," since they aren't technically taxable receipts for the P-PPI form? Or maybe they belong somewhere else within this Schedule V for business receipts and expenditures? I guess it's unclear.
On Form P-PPI, you put pass-through items and all non-taxable receipts under section 2.5. For Schedule V, you don't actually enter anything there... the form itself doesn't provide a space for it.
Brenda Chase3 said:You would just list everything related to private citizens under Section III.
Account, thanks. I'll total up all the uncollected amounts from taxpayers and group them under Section III...
I filled out the form and submitted it for basic validation. But I keep getting this error: 1.2300.2.0.2.22 Errors during taxpayer verification for Form Tax Stat 1
It doesn't give me any other details... just mentions errors without saying what they actually are. I can't find an explanation anywhere for what this code means. The form looks correct to me. If anyone knows what's going on, please let me know...
I’m looking for some clarification regarding the OPZ STAT filing.
I have some outstanding receivables from regular individuals—just private citizens, not business owners. As I understand it, under US tax regulations, I’m not required to collect their Social Security numbers.
So, here’s my dilemma: what do I enter on the OPZ STAT form when I don't have an SSN, which wasn't even necessary to include on the original invoice? I saw a post on the forum a while back where shadowdrifter99 mentioned we don't need to list an SSN on receipts for private individuals. My question is... what should I actually input into the form?
I have an incoming invoice where 60 percent is for business expenses and 40 percent is for personal use.
In my KPI, I only record that 60 percent portion (plus the related sales tax).
I wasn't quite sure how to handle this in the purchase ledger.
I called the IRS, and they told me to enter the FULL amount of the invoice into the purchase ledger, then just split the sales tax between those two columns—the 60 percent that’s deductible and the 40 percent that isn't.
Wouldn't it make more sense to just list the 60 percent that actually applies to the business in the ledger?
How are you all handling this?
They also mentioned that I should only be entering invoices into the purchase ledger if they include sales tax, and that others—like bank fees or stuff when you aren't on a sales tax schedule—don't need to be entered there. But I read somewhere else here that you guys do include them, so now I'm confused... For those invoices without sales tax, I just put them in the KPI and attach them to my bank statements. Thanks
I submitted my tradesman contributions for review, and after checking the data, it says "Form verified and correct."
But when I went to sign and submit, right where the electronic signature goes, it shows "Form verified and correct," yet immediately underneath, there’s an error and warning message... code UL-B8-1, stating the recipient isn't registered for mandatory Social Security.
For section 8 of the form, I entered number 3 (it’s not my first month, nor my last)
What's going on? Why am I getting this error under section 8 regarding the start date, especially since I've been paying these contributions for years...
Since this is listed as a warning rather than a hard error, does that mean the form will still go through and sync with my payments despite the notification?
And how can they claim I'm not registered? My Social Security number on the form is definitely correct. It seems like a glitch on their end... should I just send the form as is, even with the warning attached? Thanks,
John Doe got the IRS portal up and running... no more blocked fields...
Well, now, look at you lot... all jumping on the bandwagon to go after John Doe...
I have a quick question for those who have been sending John Doe's for "years" now... Can I send the payment to John Doe first, and then handle the contributions later...
Thinking about sending it over to John Doe around 1 AM... if everything clears by 8 in the morning, I'll sign it and get it sent out. Only then will I open up the contributions...
I’d probably go that route... I run into issues with signing and sending things all the time. I wouldn't want to end up in a spot where I've already sent in my contributions, only to find out I can't submit the actual form...
So, is it possible to file the form first and then handle the payments... all within that same 24-hour window?
My last post didn't go through, so I'm trying this again. To reiterate: this whole payroll system is going to drive me insane. Anyway, I finally figured out where everything goes in the portal, so I went ahead and tried to run a "test" entry today.
I filled out the header correctly, handled the 😳second filer signature, and moved on to Page A.
But then, on Page A, all those boxes meant for contribution amounts are grayed out... like they're locked, so you can't type anything in at all. For example, VI1.7, VI2.6...
Basically, every box on Page A related to the contributions we calculate and pay ourselves is blocked. The rest of the boxes seem fine. Page B is working just fine too. It occurred to me that maybe these specific fields were just rolled out today—like it's their first day in existence—so perhaps the IRS is just slow to unblock them. If anyone could check if they're seeing this same lockout, it would give me some peace of mind... I just need to know if it's a system-wide thing and not just my mistake. Thanks,
So, interest earned on the checking account goes straight into the MIT... it counts as receipts, and on the P-PPI form, we list them under "receipts via bank account":
Basically, they bump up our total income, which means we end up paying more under the Income Tax Act.
Just one more thing: I have a client who paid late, so they included some interest for the delay.
I didn't record those interest charges in my Sales Journal—I just logged the actual invoice itself. Should those late fees be recorded as a receipt in the MIT?
Lada, I read somewhere you mentioned that interest on checking accounts counts as receipts, which means they’d need to be logged in the MIT.
For years now, following the IRS guidelines, we haven't been logging bank interest as income or receipts for business owners. We always just listed them as the difference between total bank activity and actual receipts.
Could you let me know if there’s been a change in the rules? I'd love to know where I can find the updated documentation... Thanks,
graniterider10 said:Before, when dealing with interest or down payments on earned income, I used to put together a separate breakdown for any wire transfers that didn't end up being logged in the main Cash Receipts and Disbursements Ledger. Does this mean I’m supposed to do all of that *only* on this new form now... and still skip entering them in the main ledger? Okay... I guess I totally misunderstood how this works. So, the form has Section II RECEIPTS, specifically item 2. RECEIPTS VIA WIRE TRANSFER... is that where I log those interest payments? And then under Section V SUPPLEMENT TO THE CASH RECEIPTS AND DISBURSEMENTS SUMMARY, item 2. DIFFERENCE BETWEEN BANK STATEMENT TURNOVER AND REPORTED RECEIPTS... do I list those interest amounts there? Also, that discrepancy from the State Employment Agency payment is going to pop up too—should I just mark that as part of that difference?
From what I gather, you don't list interest received via bank transfer under II.2 Receipts via Bank Transfer, because then your Section IV TOTAL EARNED INCOME/LOSS won't balance correctly. The realized income or loss has to match the actual income tax return.
I suspect these interest amounts are only recorded under 2.5 (other unspecified receipts, which aren't considered taxable receipts). Just my two cents... hoping someone can confirm...