Quote Originally Posted by Axe View Post
I need some input here from any suitors that run their own businesses.

Hopefully you will sacrifice a little bit of your time and charitably contribute
to this thread.

I've been redeeming lawful money for over 2 years, and have copies (front and back)
of all checks that I've done this to.

I'm a sole proprietor, and have a business license from my state.

I do not have a "business" bank account. I just run two personal checking
accounts and a saving account, using one of the checking accounts for the
business, and the savings for the local sales tax I have to pay quarterly here
to the local borough.

Customers give me personal checks, or pay online with PayPal.

With Paypal, there was no way to do anything with a restricted endorsement
so I just withdraw from Paypal via check and apply the endorsement to that.

Running my business costs a reasonable amount of money (expenses), which are
to be deducted from the total (gross) amount.

The problem I'm having is if I only declare the amount of money that I wasn't
able to apply my demand to, I come out way negative (loss) after expenses.

This would be things like having to do an electronic transfer to my bank,
or making purchases direct from my PayPal debit card. This is a much smaller
amount than the lawful money amount.

The goal is obviously to be completely honest in all of my dealings, so on my return
I declare all of my expenses, which is what runs me into the red.

Maybe I'm missing something very simple here, but I need to figure out how to
do this accounting under this system.

If I only report expenses that I paid with Fed notes, then it will appear deceiving,
as my business would have obviously had more expenses than that.

So my question is how are you guys writing this up?

Thanks.

I tried to follow all that and well...

The question is how much withholdings are you paying? Your accounting should not be any different than normal. You have been redeeming lawful money so you have no taxable income - that is Zero. Therefore there is an amount of withholdings you have been paying in for state and federal income tax. That amount will automatically subtract from Zero and be your Refund.

Possibly you are not paying any Withholdings. Then you don't have to File because you have no taxable income. However it is turning up wise to file, include evidence you Demanded lawful money. This keeps the IRS agent from assessing you on the hearsay of others, like your clients/employers/bosses.


Regards,

David Merrill.