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GrnEyedDvl's Desk

Update on the IRS situation

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This is too long to put in the comments section, so I will post some info and reply to comments as well.

I managed to eliminate $24,800 of that $52,000 number by faxing them a ton of paperwork, after I went and bought a damned FAX machine. They haven't confirmed that yet (they need 30 days....) and then I will get another letter telling me what they think.

They are still probably going to bang me on $6,000 worth of donations that got reclassified from "Personal Payments" to "Sale of Good and Services" which means I will probably end up paying $1500 (guessing here) or so once its all said and done. That's one hell of a lot better than $16,000.

Here is the part that really blows, both for me and for anyone that made a small donation to TWC. PayPal is now charging me fees on those donations to the tune of about $400. Its basically a 30 cent transaction fee plus 3.4% of the total, just like its a credit card transaction. So lets assume you donated $1.00

1.00 - .30 transaction fee - .04 percentage fee - = 66 cents gross income for TWC.

Gross income means before I spend it on whatever TWC needs. Anything left over I am being banged for a 35% federal income tax because of my personal income bracket since these donations will now be considered "Sale of Goods and Services" instead of a person to person transfer like it would be it you opened your wallet and gave me $1. So a small donation is really no longer worth accepting. That sucks for a lot of TWC members as most of our donations were in the $5 range, there were just a lot of them. I need to seriously consider whether or not I will accept any donations at all in the future.



Quote Originally Posted by Gen. Chris
Just saw this because of your post in Q&S.

Is there anything we can do to help, GED? Probably not but between this and the Westeros mod issue last year I feel like the site is having a pretty rough year. Just wish we could help.
Not a thing, unless you happen to have a Democrat senator in your pocket that can tell me how they get away with not paying their own taxes...


Quote Originally Posted by Garbarsardar
So, you mean that our donations go to the friggin Republicans? Because as I read it the first four states by % of Federal aid towards revenue have Republican Governors.
The Dems are making the rules, have been for years.


We'll get them basterds, GED, I promise you. Did I tell you about the time I had to prove to the Greek IRS that I am indeed in Taiwan and indeed a full time faculty member and indeed tenured? And that they asked me to translate the letters from the Taiwan IRS, from the University vice-president and the personnel office? And that they would only accept translation from our foreign office? And that there was no-one in the foreign office that could translate Traditional Chinese (as opposed to the simplified chinese)? And that after looking the Greek IRS guy for 5 minutes in the eye, after all this, he said "I guess it's alright then"?
Governments are the same the world over. They have no idea how things work.


Come to Greece, GED.
Next summer. We are taking a roadtrip in the States this year. Next year we are doing another overseas trip and Greece is high on the list of choices.


Quote Originally Posted by PikeStance
For reasons I thought this was operated as a non- profit entity which functions as an entirely different thing.
TWC is technical a Sole Proprietorship though I have considered going to LLC. We cannot operate as a non-profit because we don't actually do any charity work of any sort, not to mention I would have to remove the Political Mudpit to qualify under IRS regulations.
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Comments

  1. Mhaedros's Avatar
    You mentioned not doing donations anymore, which might be a good idea. My though is, that when a situation arises like last year (?) when TWC fundraised 6,000 dollars, how about using a site such as kickstarter for it? They also take a percentage of course, but it might work smoother that way. Could be worth looking into.
  2. Aikanár's Avatar
    Quote Originally Posted by Mhaedros
    You mentioned not doing donations anymore, which might be a good idea. My though is, that when a situation arises like last year (?) when TWC fundraised 6,000 dollars, how about using a site such as kickstarter for it? They also take a percentage of course, but it might work smoother that way. Could be worth looking into.
    I figure the same applies there. The donations on kickstarter are probably liable to the same regulations as the PayPal donations are, simply because the receiver is TWC which is owned by GED.
  3. Halie Satanus's Avatar
    And then you get to view the trib comm to see how much all the BS is appreciated..
  4. Garbarsardar's Avatar
  5. Loose Cannon's Avatar
    I couldn't put this on your other blog post (too many characters?)

    What kind of :wub:ing dumbass accountant allowed you to file as a Sole Proprietor? LIMITED LIABILITY CORPORATION The costs are minimal and you have some measure of protection from the average lawsuit happy fellow 'Merican. See yesterday's ruling on GM's bankruptcy for an example.

    Every business I've owned since 83 has been incorporated.
  6. Shankbot de Bodemloze's Avatar
    Is it just PayPal that are now classing it as a 'Sale of Good and Services', or is that due to new regulation? Because, as has been mentioned, switching to a different process of making donations could work.
  7. s.rwitt's Avatar
    Why wouldn't you have filed as an LLC a long time ago?
  8. Settra's Avatar
    Sad too see that fiscal is crap everywhere.

    Doesn't becoming an LLC impose certain restrictions?
    Updated April 16, 2015 at 12:00 PM by Settra
  9. GrnEyedDvl's Avatar
    Quote Originally Posted by Loose Cannon
    I couldn't put this on your other blog post (too many characters?)

    What kind of ing dumbass accountant allowed you to file as a Sole Proprietor? LIMITED LIABILITY CORPORATION The costs are minimal and you have some measure of protection from the average lawsuit happy fellow 'Merican. See yesterday's ruling on GM's bankruptcy for an example.

    Every business I've owned since 83 has been incorporated.
    I just haven't bothered with it yet. Everything else I do is an LLC.
  10. Derpy Hooves's Avatar
    "We are taking a roadtrip in the States this year"
    Really? Well if you happen to drive through Pittsburgh, be sure to send me a PM. I would love to meet you, perhaps show you around
  11. Augustus Lucifer's Avatar
    So if I understand this correctly, all we have to do in order to get the Mudpit removed is do some charitable work? Count me in!