Reporting Income

Discussion in 'Accounting and Legal Advice' started by Adrian Nelson, Jun 22, 2009.

  1. Adrian Nelson

    Adrian Nelson New Member

    Hello everyone - I have noticed that several posts deal with whether to report income earned on the Internet. My advice would be to never underestimate any tax authority.

    They have several mechanisms to cross-reference revenue streams - even those earned on the Internet. It is too high of a gamble to take - and why would you want to?

    Good ethics are the cornerstone to any profitable and lasting business. What do you all think?
  2. johnjimat

    johnjimat New Member

    Hi there Andrian,

    Welcome to the forum. thanks for sharing. i dont know anything about the tax [​IMG] . are we have to report our income on the internet?
  3. Adrian Nelson

    Adrian Nelson New Member

    Hello John,

    Assuming you reside somewhere in North America, you are required to report your "world" income - which includes that earned on the Internet.

    You should always keep copies of the sales that you make, including the customer, item and date sold, the amount (with applicable taxes separate) and method of payment. Remember that if you are keeping a proper set of books and records, these deposits should flow through to your bank statements.[​IMG]

    I understand that both US and Canadian tax authorities are working diligently to encompass unreported Internet income into their possible audit arena.

    I hope this helps!
  4. Newbie Shield

    Newbie Shield Gold Member

    Hi Adrian,

    My stance is to report all income.

    ~Newbie Shield~
  5. mediafreak

    mediafreak New Member

    if you have accurate reports of income you can judge what to put your resources into, like Product A vs. Product B. If you don't know how much is selling of what, you don't know which products to develop more of.

    Also, if you are running low on cash and your income figures aren't accurate, you may find yourself running out of cash to pay your bills. Some of the benefits of being a straight A business fellow [​IMG]

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