- quote -

Sounds like you are a self employed internet entrepreneur
and need to file a Schedule C. You owe taxes on the profits
after deducting your expenses. I think you may be asking in
your last question if you can get away with tax evasion. Of
course you can, just like speeding in your car. People do
it every day but there is no guarantee that you will not get
caught and I for one would not sign your tax return knowing
that there was a material omission.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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kurdayon[at]yahoo.com (Kurda Yon) wrote:

- quote -

Your net income from this activity will be subject to
federal and, if applicable, state income taxes just like any
other business.

However, I suspect your question has more to do with sales
and use taxes. The answer, as usual, is "it depends." Some
sales of products delivered electronically may be subject to
sales and use taxes in some states. The best thing to do is
to contact your state's tax authority and explain to them
what you will be doing. They will tell you what the rules
are.

What kind of control are you concerned about?

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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kurdayon[at]yahoo.com (Kurda Yon) wrote:

- quote -

Your other post on the same quesion made more sense. If you
sell ANYTHING (not otherwise exluded) to anyone in your
State, you owe your State sales tax on the proceeds. If you
have a presence in another State, you owe them sales tax on
any sales to their residents.

ed

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kurdayon[at]yahoo.com (Kurda Yon) wrote:

- quote -

Generally speaking, if you sell anything to anyone in your
State you owe your State sales tax on that sale. If you
have a "presence" in another state (like A WArehouse, sales
office, or even a computer server) you owe that State sales
tax on purchases by residents of that State.

ed

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Kurda Yon wrote:

- quote -

If you are a US Citizen of permanent resident you in all
likelihood subject to US and possibly some state's income
taxes. Do you think Itunes.com does not pay income taxes?

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Kurda Yon wrote:
- quote -

Yes. Certainly income tax, and possibly use tax on the
purchase (if your state taxes intangible property, and
purchased from out of state) and sales tax on the sale (if
your state taxes intangible property, and sold IN state).

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"Kurda Yon" <kurdayon[at]yahoo.com> wrote

- quote -

Yes, you are subject to all the federal and state laws in
effect at the time the income was earned. If you sold goods
or services to an in-state consumer, and those goods or
services are subject to a sales tax in your state, then you
owe the sales tax reports as well as the tax you should have
charged, collected, reported on, and remitted to your state.

If you show a profit in conducting your business, that
profit is taxable for both federal and state income tax
according to the type of entity you run the business under
(corporate, partnership, sole-proprietor)

- quote -

I don't know what you are asking, but you are subject to the
sale laws as everyone else.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Can anybody tell me if I need to pay any taxes if my
business is a manipulation of information in Internet ? For
example I sell some pictures or music or something else,
that I bought (for exampple) from somebody, and that were
always in electronic form. And in the case if I need to pay
taxes, is there some possibility to control me?

Thank you.

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