2014 Taxes

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JBloggs

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This is a catchall thread - so anything that pertains to your annual tax return can go in here and we won't accuse you of chasing rabbits.
 
Reports from the credit card processor - one report from the main processor included the amex processing. Then got a separate amex report. Not sure if that looks like we made an additional 30% or what.
 
Reports from the credit card processor - one report from the main processor included the amex processing. Then got a separate amex report. Not sure if that looks like we made an additional 30% or what..
Could the difference by Refund amounts? CC Processor Tax Statements do not subtract any Refunds, just gross receipts.
 
Reports from the credit card processor - one report from the main processor included the amex processing. Then got a separate amex report. Not sure if that looks like we made an additional 30% or what..
Don't know if this helps: http://www.irs.gov/Businesses/Understanding-Your-1099-K
"The gross amount of a reportable payment does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts."
At least for our corporate entity tax returns, there was no place to enter specifically any amounts reported to us on any 1099-K forms, which is a good thing since the calendar-year reporting period for the 1099-K doesn't mesh with the fiscal year we use for one of our corporations!
I think the expectation is that a business should be maintaining their own records, and will be filing their taxes based on those books. IF (big if) one were to be audited and there was a major discrepancy between some 1099-K and your reported business revenue, then you might be called upon to explain that, which shouldn't be a problem if your records are good.
I think these 1099-K's are aimed at all the nouveau entrepreneurs using PayPal/Square/AirBnB, etc... who just don't realize that they are engaged in business and have to report this income, even if it isn't shown on the W-2 they get from their day-job employer... (and yes, AirBnB sends out 1099-K's too -- we got one this year from them, we had two guests via them).
 
Reports from the credit card processor - one report from the main processor included the amex processing. Then got a separate amex report. Not sure if that looks like we made an additional 30% or what..
Could the difference by Refund amounts? CC Processor Tax Statements do not subtract any Refunds, just gross receipts.
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Momma Smurf said:
Could the difference by Refund amounts? CC Processor Tax Statements do not subtract any Refunds, just gross receipts.
Concern was IRS counting the same income twice because they received the same income info twice from the processor.
The forms never match, but they're close. But if the IRS sees the income reported twice when it was only earned once, that looks like a helluva lot of 'unreported' income.
 
Running reports as I go...always a good recap of the year. Seeing patterns.
 
I have not started entering checkbooks yet. That is the only think holding me up. I use my antiquated excel spread sheet to give me my revenue. Sq & cc processors do not record checks or cash either. It was a good year.
 
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