Taxes on Huge Monthly Earnings

[mike]

Hello, I am no huge affiliate, just started a few months ago and the bulk of my earnings have come from targeting a few sub affiliates who have there friends sign up under them and I earn as a favor. It's pretty nice as long as they play.

But I am thinking about developing a website and optimizing it and adding unique content and really making a unique site with my own ideas and content so that search engines embrace it.

Now if this were to work out in my favor and I started earning a good living, hypothetically cause its a tough bizness to make mucho bucks in.

What do you guys do about taxes.

Cause there is no getting around it, as much as anybody likes to think or even if they have for a few years, IRS tracks you for 15 years sometimes without you even knowing.

I know this, so my question is if your making 9 to 50 Grand as an affiliate and your living in the USA. IF you are obeying the law, you are paying prolly 40% taxes at least cause there are really no expenses that can be claimed(unless fraudelent) which they also let add up.

So for those of you who make those 250 grand a year sums or even 85 + a year from poker affiliate earnings and live in the USA. You pay your full taxes...

Maybe what I will do is take a poll also, to keep it anonaymous.

Cause I mean, I would think that if your making alot of money, you would move cause you can't avoid paying taxes. Neteller, any payment system has IRS ties regardless of what anybody says, your income is being tracked.... So if you go 10 years without making honest tax payments, it bites you in your ass.

So do you big boys Live in another Country? Find a way around it or so you think? Just pay a full tax?

Would love responses, and also those who are weery of posting in a open forum, just speak in hypothetical terms....

Ill also do a poll, thanks..

[mike]

P.S. I am not a hater or trying to put a scare into anybody.

But if your gonna make alot of money and live in this great country.

You better pay your taxes, lets just say I have a couple friends who are lawyers and the IRS can hit at anytime and they have access to everything...

Looking out for my affiliate brotha's.

There is no price on freedom if you live in USA.

[FeeRan]

OK, what if you have another, good source of income?? This is an overseas business, and if you are making $50,000+ a year normally, do you think the IRS would do anything?

I haven't cashed out enough to pay taxes yet by the way, I have most of my money in my account to fund my promotion.

I think any tax questions you ask here will get a thousand different answers. There are so many gray areas with what we do........too many in fact. The best advice is to go see a tax attorney once you get to a level that would scare you if you get audited.

[FeeRan]

Jeremy, do you have to pay taxes with your overseas company? I know you set up one of those, not sure if it's US tax exempt or what.

[Dave]

There are plenty of expenses you can claim.

1. The cost of running and building your websites.

2. Printing costs for offline promotional materials.

3. Office supplys, travel expences........

4. I'm claiming the cost of Jeremy's e-book.

Affiliate marketing is a real, legitamate business not some scam.

We're entitled to the same tax deductions or running our business as any other.

Keep those recieipts and record your income just like any small business.

This is not an "overseas business" FreeRan.

PartyPokers servers are in Canada.

NetTeller has regional offices in:

- Calgary, Canada
- London, England
- Hong Kong, China
- San Jose, Costa Rica

If you run a website for profit your government tax boys can easily track you down and find out how much money you've made.

This is from NetTellers user agreement.

2. We disclose information that we in good faith believe is appropriate to cooperate in investigations of fraud or other illegal activity, or to conduct investigations of violations of our User Agreement.

3. We disclose information in response to a subpoena, warrant, court order, levy, attachment, order of a court-appointed receiver or other comparable legal process, including subpoenas from private parties in a civil action.

Pay your fair share of taxes, you'll sleep better at night and won't get hit with a huge fine or possible jail time.

[mike]

Yeah I agree Dave, great post. Just was trying to get the point across that is it important.

[FeeRan]

Originally posted by Dave@Mar 9 2005, 09:35 PM
There are plenty of expenses you can claim.

1. The cost of running and building your websites.

2. Printing costs for offline promotional materials.

3. Office supplys, travel expences........

4. I'm claiming the cost of Jeremy's e-book.

Affiliate marketing is a real, legitate business not some scam.

We're entitled to the same tax deductions or running our business as any other.

Keep those recieipts and record your income just like any small business.

This is not an "overseas business" FreeRan.

PartyPokers servers are in Canada.

NetTeller has regional offices in:

- Calgary, Canada
- London, England
- Hong Kong, China
- San Jose, Costa Rica

If you run a website for profit your government tax boys can easily track you down and find out how much money you've made.

This is from NetTellers user agreement.

2. We disclose information that we in good faith believe is appropriate to cooperate in investigations of fraud or other illegal activity, or to conduct investigations of violations of our User Agreement.

3. We disclose information in response to a subpoena, warrant, court order, levy, attachment, order of a court-appointed receiver or other comparable legal process, including subpoenas from private parties in a civil action.

Pay your fair share of taxes, you'll sleep better at night and won't get hit with a huge fine or possible jail time.

Actually, Jeremy runs his business with an overseas company, look in the "Brainstorming" thread for reference. I'm wondering, does this affect taxes is any way?

[FeeRan]

PartyRiches is owned by iWager Entertainment S.A. in Costa Rica, not Jeremy Enke in Chicago. So you need to take that issue up with my corporation, not me personally

[richardb]

Anyone who is a U.S. Citizen must pay taxes on all income, regardless of the source (foreign or domestic). NETeller does not voluntarily give your info to the IRS, only upon request. You will never get the answers you are looking for, lets stop discussing this subject.