Relief from the Fear of the IRS When Internet Marketing | Finance ...

Yep, taxes must be paid on online income. Anyone who says that you don?t does not know what he is talking about. Also, the IRS can see everything. If the Internal Revenue Service has reason to believe that you are not reporting the right income on your taxes, then they have reason to audit you. But, do not obsess about this. You can avoid being audited if you properly report and track your income and expenditures. Also, this will involve sending the right tax to the IRS on a yearly basis. You might think that this is a lot, but it is not. The following tax tips can help you with your situation.

Do not discard any payment receipts. Did you and the client enjoy a cup of coffee during your last business meeting? Did you buy pens for your office space? Did you have to get a new software package in order to keep up with the latest program on your computer? All of these expenses are deductible, but you will need your receipts to do so. This is why it is important that you maintain records for all purchased items. Indicate the purchase of the expenditure and make sure the receipt is in a safe place. You are going to experience difficulties if the totals on your receipts do not match your claimed deductions. So, do not discard any of your receipts. It might seem messy, but it is worth the mess. When hiring a bookkeeper is simply out of the question due to lack of funds, there are programs presented for doing this sort of work on your computer.

Quicken and QuickBooks are very reliable programs for keeping track of your records. This will organize your records so you can identify items like tax deductions. There are those which are equipped with the ability to process your taxes after you choose the forms that apply to your situation. You will want to make sure that the tax forms and laws on these programs are not out dated. If you are not abiding by the correct laws, you could be setting yourself up for a fall.

This rule applies to the IRS figuring that of the three sorts of Internet Marketers (sole proprietors, freelancers, and entrepreneurs); they will be likely to have an income from their business three out of every five years. If you are continually failing to make a profit, it is going to raise some red flags with the IRS. When you are able to keep meticulous records, you should not have any concerns if the IRS takes a notion to check your bookwork. Some people try to shuffle some numbers so they will not owe so much in taxes; you will likely not get away with it and will suffer dire consequences.

Keep a record of your medical receipts. Being an internet marketer, most likely you do not have health insurance. But, this does not mean that you do not have medical bills. Keep records the money that you dish out for dentists and doctors. The rules on this vary greatly so it is best to do some research and talk to someone at the IRS. Do not think that you can deduct all expenses. But, there might be an amount that can help decrease your overall tax responsibility. Online marketers are responsible for tracking plenty of different items. Taxes are just another thing that IM?ers much track. If you track your expenses properly, then hopefully you will not run into any problems. Keep in mind that there are pros available to give you help.

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Source: http://finance.redbright.co.za/relief-from-the-fear-of-the-irs-when-internet-marketing/

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