So ARS is collecting photo IDs for ePassporte

[Jim]

Originally Posted by gregtx

I can totally see how tax issues would be a major problem.. we've been hit with some pretty hefty fines.. b/c tax ids no longer match a paid to...

Me too When I had Ultracash, I wanted to report paying foreign webmasters. Our software spit out 1099s for everyone and put all "0s" for non US webmasters. I sent them to the IRS and they fined me $20 for each one. It ended up being over a $20k fine. The thing is, before they let me know, it was another time for taxes and I did it again (not knowing it was wrong). They never did or said anything about them. I guess it just depends on who or what is doing the 1099s on any particular day.

[gregtx]

Originally Posted by Jim

Me too When I had Ultracash, I wanted to report paying foreign webmasters. Our software spit out 1099s for everyone and put all "0s" for non US webmasters. I sent them to the IRS and they fined me $20 for each one. It ended up being over a $20k fine. The thing is, before they let me know, it was another time for taxes and I did it again (not knowing it was wrong). They never did or said anything about them. I guess it just depends on who or what is doing the 1099s on any particular day.

i'm having dejavu... except .. the $20 each was on US webmasters!!!

now we constantly have people updating their pay to info to some foreign entity.. and then wonder why we have to hold payment b/c their old tax id gets kicked back by the irs... for a no longer working tax id... I think there are lots of people getting bad tax advice from friends and boards.. not realizing that just moving their company offshore.. does not let them not pay US taxes.. ifthey still live here...

[Toolz]

Originally Posted by gregtx

i'm having dejavu... except .. the $20 each was on US webmasters!!!

now we constantly have people updating their pay to info to some foreign entity.. and then wonder why we have to hold payment b/c their old tax id gets kicked back by the irs... for a no longer working tax id... I think there are lots of people getting bad tax advice from friends and boards.. not realizing that just moving their company offshore.. does not let them not pay US taxes.. ifthey still live here...

LOL yeah I'm not sure where everyone got this idea that you didn't have to pay taxes if you just created offshore corps everything would be fine and dandy, yeah, that works great if you MOVE offshore and don't plan on coming back.

[Jim]

Originally Posted by Toolz

LOL yeah I'm not sure where everyone got this idea that you didn't have to pay taxes if you just created offshore corps everything would be fine and dandy, yeah, that works great if you MOVE offshore and don't plan on coming back.

That's correct...but if a sponsor is from out of the US and is paying you through an offshore bank, you are basically running a cash business, right?

So, like any other cash business, you need to report that cash you receive Kind of like tips if you are a waiter Or the guy down the street from me that I buy motorcycle parts from. For some reason, if I pay him cash, the price is cheaper and I get no receipt But I know he must be reporting that income

[Jim]

Originally Posted by gregtx

i'm having dejavu... except .. the $20 each was on US webmasters!!!

now we constantly have people updating their pay to info to some foreign entity.. and then wonder why we have to hold payment b/c their old tax id gets kicked back by the irs... for a no longer working tax id... I think there are lots of people getting bad tax advice from friends and boards.. not realizing that just moving their company offshore.. does not let them not pay US taxes.. ifthey still live here...

It got much worse for me. My accountant contacted the IRS and assured them that we would be sending corrected 1099s. So again, I heard nothing from the IRS until it was too late. I paid the accountant for the new 1099s but they failed to send them to the IRS. The accountant said he did, the IRS said they never received them so...I was screwed twice.