What percentage of your income do you report?

[Mikey P]

No, I wont sell my list to the IRS..

 

[XTREME1]

I report 100% anything else would be a crime

 

[Jeremy]

I picked "What income?". Not becuase I'm ripping off Uncle Sam... I just don't make any money.

 

[danpauselius]

I also report everything. But every now and then, a little cash job slips through the cracks mainly due to my forgetfulness.

 

[Derek]

remind me, which amendment was never ratified?

 

[Lee Stockwell]

It's only a crime to evade taxes.

It's NOT a crime to avoid and minimize them.

I noticed you didn't have a "100%" option, so I passed on the vote.

By the way, I know of two IRS employees who also clean carpets and read the boards, just so you know.

Thanks,
Lee

 

[Guest]

I report everything 100% because I sleep well at night knowing I won't go to jail if I get caught. I also like the fact that I can run reports on my sales and expenses and I know they are accurate.

I also don't fill up my personal vehicle with business money or take personal dinners on the company. If you get audited, they know what your percentages should be.

Dave

 

[joey895]

I also report everything. But every now and then, a little cash job slips through the cracks mainly due to my forgetfulness.

This is me.

 

[Lee Stockwell]

For every time that may happen I'd bet there are TWICE as many times I lose a cash paid receipt before I get it back to the office.

 

[danpauselius]

I second that one, Lee!

The wife is always asking me for receipts. One of these days she's just gonna beat me when I tell her I don't know where it went, LOL.

 

[steve r]

ditto dan n lee. i try my best to be honest like dave said so i sleep good at night well kinda good.

 

[Dolly Llama]

I voted 99%.
But honestly, it's probably between 90 and 99%

..L.T.A.

 

[Desk Jockey]

100% 8)
And we've still been audited twice in 10-years?

 

[1tigers]

 

[Kevin B]

I clicked 99, only cause it was closest to 100. We report every job. Every cash sale, every large check. Not only is it the moral thing to do, its the law. Also, its easier to know your real numbers if your not cooking the books.

Alot of ways to skin a cat. I have a friend who is an auditor. He told me straight up that the IRS knows how much you make by your bank deposits, and 1099's. Outside of that, its all on the honor system. In other words, if you pocket the cash and the invoice gets lost.......

 

[Steve in Omaha]

I voted 99%.

you are either honest or you are not. I think customers respect me more when asked how to fill out the check, always insert the business name. Cash or check? Either way it all goes to the same place, is my answer. If you have a good cpa you can play by the rules and still come out just fine.

yeah, I like to sleep also.

 

[Steve Toburen]

A good question, Mike. Even though a lot of our board members would be crazy to post their true numbers on here. The IRS does get around.

We reported everything ... that came into the office. Obviously what "stuck" to my employee's hands in cash "side work" didn't get reported by either me or them. (If you have employees working outside of your immediate supervision this probably is a much bigger problem than you realize.)

Steve Toburen CR
Director of Training
Jon-Don's Strategies for Success

PS Nobody likes paying taxes. (I still pay a huge yearly tax bill and I don't even live in the U.S. Does that ever frost my cookies!) But ethics aside, lots of carpet cleaners don't realize being dishonest on your books can cost you big time down the road.

Don't forget, the valuation price of your business when and if you decide to sell will be based on capitalizing your Owner's Adjusted Cash Flow. (OAJC) Simply put, OAJC is what you show as net profit PLUS all of the little "owner's perks" that you comp yourself as business expenses (country club dues, Mercedes lease, "business entertainment", vacations masquerading as seminars, etc) PLUS your salary MINUS the cost of hiring someone to replace you in the business actually doing your work. So it will behoove you to make sure your OAJC is as high as possible to get as much money as possible for the sale of your business. (And no, no business valuation expert is going to factor into the sales price your unreported cash income!!)

I have quite a bit of information on how to prepare a carpet cleaning business for it's eventual sale, including a "valuation formula" on what your business MIGHT sell for. (Remember you should NEVER sell your business without getting expert valuation, legal and tax advice.) just write me at stoburen@homefrontsuccess.com specifying you want the "selling your business" info and I will e-mail you a copy. No charge and no obligation.

 

[-JB-]

Did ya ever notice that the custs. that ask if you will give a discount for cash are ALWAYS the biggest pains in the ass!?
I determined that little tidbit "back in the day" when I felt it should be normal op. procedure to "dip", it's so not worth it.

Why-

1- I like to sleep well at night
2- I can't make a real assessment of my operation without all the figures
3- Karma
4- I can't grow to the best of my abilities, if I'm "dipping"
5- There are plenty of legitimate right-offs, I don't want to be a greedy fool!
6- If I have a legit write off and my CPA says may not be a good idea, but, allows me to take it, guess what? It's legit, otherwise he wouldn't allow it, because he will have to defend it. If he knows he can defend it, TAKE IT! If the speed limit is 55mph do you travel 45 just to be safe? I didn't think so. The IRS allows you a certain limit, take it to the limit, but not a step beyond.

 

[Mikey P]

I have had clients who own businesses themselves just about insist that I take cash.

Of course my wife is convinced that Jehovah and the IRS share an office so it all gets reported.

 

[-JB-]

Now that mention it, I did a job for an attorney a while back who emphatically insisted I take the cash $680, but lose all the paperwork.

The next day the van shit the bed, repair costs, $720, Karma???

I claimed the cash... that bastard caused my van to breakdown! :x

 

[Guest]

I clicked the 101% because like Lee said I lose alot of receipts when I buy business related items. Some clients ask if they can get a cash discount. I tell them It all goes to the same account.

Jeff Powell.

 

[Blue Monarch]

100%. Because I want to know exactly what's coming in. I'm too lazy to keep two sets of books.

 

[Greenie]

He told me straight up that the IRS knows how much you make by your bank deposits, and 1099's

Not to be condescending but...HOW ELSE ARE THEY SUPPOSED TO KNOW?

Taxes are not a moral issue!

And you are not sheep, use your head.

If you think for one second a federal tax is a moral thing you have a lot to learn, it reminds me of the guy who thinks his gasoline tax actually goes to maintain roads, just another means for the feds to extract money from it's citizens.

Cash is what makes the world go around, if you think the filthy rich "claim" their income you are missing the boat. That burdon falls apon the working class.

It's all clearly spelled out in the Constitution, and I would point out Derek's post, it was not properly ratified....for a reason, but like many things it was pushed through corruptly, your freedoms are being encroached every day, and you voted for it to happen.

Keep paying into the system and the corruption just grows, we're not far off from looking just like Cananda or the UK, and ask your next Canadian friend what % of income they pay when all is said and done...it's criminal.

 

[rhyde]

IRS is the last people you want to screw with i have too much to loose business, real-estate, liquid assets. they will spend a million bucks to get that 10K you didn't pay in taxes over 5 years


i have only known of 1 person that got the upper hand on the tax man and that's because he had nothing they could take but he owned nothing ..anyone want to live like that?

 

[Greenie]

they will spend a million bucks to get that 10K you didn't pay in taxes over 5 years

Randy, this is simply not true.

The IRS is no different than any other private business, they have a budget, limited number of agents, and they must justify their efforts, in other words they must selectively prosecute. Which btw is illegal, but it's done.

Having just met with an accountant yesterday(not a certified public accountant, no attorney-client privilege there) the IRS looks to recoup more than the cost of litigation of an enforcement case, hence why you hear about people flying under the radar screen, keep your numbers in check and all is well.

And for gods sake don't deposit cash.

 

[Dolly Llama]

"he had nothing they could take but he owned nothing ..anyone want to live like that?"

welp, once you hit bottom, there's no place to go but up....


..L.T.A.

 

[Greenie]

i have only known of 1 person that got the upper hand on the tax man and that's because he had nothing they could take but he owned nothing ..anyone want to live like that?

We're not supposed to live like this? lol

 

[Greg Loe]

A friend of mine was going to buy this tanning business and the owner said he made$$$ a year. Looking at the books he only made $ a year. He said the rest was hidden from being taxed. She didn't buy it. He couldn't prove income.

 

[danpauselius]

No other Government agency has as much power as the IRS. That scares me more than a little.

 

[randy]

Lee that comment about there being two IRS employees that clean carpet was just plain wrong ! Waldo didn't want anyone to know he works for the IRS, AND BESIDES HE ALMOST NEVER CLEANS CARPET.