Are you paying your taxes?

I had a conversation with my accountant this past weekend and she was telling me how she thinks the IRS will be targeting hobbyist/small businesses this year. Just wanted to put this out there in case you're "under the table". You do not want uncle sam to "discover" your business!

And as I've said before the IRS does not play! Failed to file one freaking thing and it cost me $$$$! That's why now I have an accountant

I also think the quarter taxes are coming up soon!

I'm rambling now:
For my WI painters make sure your business is registered with the county/state. It's actually illegal to conduct any business transactions without registration. And if you need to file an insurance claim and your business is not a "legal" operation...... Also you need that paperwork for your business checking account. Well at least I did

In Canada (or at least Ontario), they actually don't want small businesses to register for taxes until they make at least $30 000 or more per year... We do, of course, claim our income on our personal taxes. My accountant (my dad) was thrilled last year when I actually came out in the black after deducting all my expenses and a portion of our house expenses (I think we're allowed 10% for home based businesses).

Everyone should definitely find out what the rules are for their area.

I've always had an accountant. And like Perry said, in Canada we don't need to register the business until we are over $30K annually. Everything goes through on my personal income tax and the house/utilities are pro-rated for a home based business.

@ Shannon and Perry - do you file a 'business tax return" as well as a personal one?

I ask because I just started up my business again (and am obviously waaaaay under the $30,000 mark so haven't registered) and the woman at H&R block said that I'd need to file a business tax return which would cost me a lot more money than the personal one I usually do...

Is there a way to file the business stuff under the personal?

It is all on your personal return... you DO NOT need to file as a business if you do not have a tax registration number. There are tables for home based business on the personal returns... there is a box on the personal return for income... she's snowing you.

I don't know what HR Block charges but my CA only charges me about $300 and he takes care of everything... and I get HUGE refunds. The smallest I've ever had was $1800+ the largest over $6000. So it is well worth the price.

I don't think I file a business one... just my personal one. My dad is my accountant. I don't usually get anything back because I don't have a job where I pay into income tax, but I haven't had to pay anything yet either.

Good to know! Thank you

I have filed taxes even before I made enough to have to in the united states.

For Kansas facepainters....This thread got me thinking if I should be charging sales tax on facepainting in Kansas. I got a reply from the KS dept of Revenue this morning and they said it is a service that is not taxable. Yay! I have other art I create that is taxable, so I'm going to have to be good about keeping it all separate.