Pianotech

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check. 

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know. 

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Benjamin,

I'm not an expert on taxes, but I am highly skeptical of any advice gathered third hand on why you wouldn't need to pay taxes on cash or checks. (What else is there? Livestock?). However, there are people that are "certified" that can help. If you go to this site, and enter your zip code, it will list the "enrolled agents" within a given distance of that location. Hope that helps!


------------------------------
John Martinson
john.martinson@a440.rocks
913-738-4252
Overland Park ,KS
------------------------------

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

He then told me he made almost $93,000 in profit last year, but paid taxes on only $20,000.

I firmly believe that's wrong and unethical. I suppose I was wondering what the IRS's official stand on this is, if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Thanks for the link John. I will definitely check it out. 

Whats the difference between an "enrolled agent" and a CPA? Is the enrolled agent licensed by the federal government, and CPAs are not? Please clarify if you can.

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Original Message:
Sent: 09-06-2017 14:39
From: John Martinson
Subject: Tax question

Benjamin,

I'm not an expert on taxes, but I am highly skeptical of any advice gathered third hand on why you wouldn't need to pay taxes on cash or checks. (What else is there? Livestock?). However, there are people that are "certified" that can help. If you go to this site, and enter your zip code, it will list the "enrolled agents" within a given distance of that location. Hope that helps!


------------------------------
John Martinson
john.martinson@a440.rocks
913-738-4252
Overland Park ,KS

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

He then told me he made almost $93,000 in profit last year, but paid taxes on only $20,000.

I firmly believe that's wrong and unethical. I suppose I was wondering what the IRS's official stand on this is, if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

At the top of the page that I referenced, there is a link that explains what an Enrolled Agent is. Here is that link for your convenience. Wikipedia also has a reference.

Generally speaking, a CPA is a higher standard requiring more education and a more vigorous exam to be certified (so I've been told). CPAs can handle much more than filing taxes. They also typically get more money. Sort of like the difference between someone that can tune a guitar vs. someone that can tune a piano.

In further response to your original question, I believe the IRS wants you to pay taxes on all income. Most businesses have a paper trail of gross receipts, for instance, a register tape that will tally all the money received over the course of a day's business. Piano tuners don't usually have such a paper trail. So, it is incumbent on honest people to keep track of the money they earn. Whoever you were taking with regarding cash/checks may be referring to the lack of paper trail. If you're a successful piano technician, and are making say low six figures, and live in a house, drive a car, that demands that kind of money, and your 1040 shows $20K for income, you shouldn't be too surprised if someone starts asking questions sooner or later...


------------------------------
John Martinson
john.martinson@a440.rocks
913-738-4252
Overland Park ,KS
------------------------------

Original Message:
Sent: 09-06-2017 15:22
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link John. I will definitely check it out.

Whats the difference between an "enrolled agent" and a CPA? Is the enrolled agent licensed by the federal government, and CPAs are not? Please clarify if you can.

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 14:39
From: John Martinson
Subject: Tax question

Benjamin,

I'm not an expert on taxes, but I am highly skeptical of any advice gathered third hand on why you wouldn't need to pay taxes on cash or checks. (What else is there? Livestock?). However, there are people that are "certified" that can help. If you go to this site, and enter your zip code, it will list the "enrolled agents" within a given distance of that location. Hope that helps!


------------------------------
John Martinson
john.martinson@a440.rocks
913-738-4252
Overland Park ,KS

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

He then told me he made almost $93,000 in profit last year, but paid taxes on only $20,000.

I firmly believe that's wrong and unethical. I suppose I was wondering what the IRS's official stand on this is, if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Benjamin

you can work with him, but just be sure you keep your records up to date.  Sooner or later the IRS will look at his figures to ask why is had livingvin a nice house, driving a nice car all over the place for only $20000 a year.

------------------------------
Willem "Wim" Blees, RPT
Mililani, HI 96789
------------------------------

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

If it sounds too good to be true.........................
Puhleeese....Without even looking up anything on the subject I feel quite confident that there is not one shred of truth in this technician's assertion. Whatever you do, don't call the IRS and ask them about this. You could/will be put on a list.

------------------------------
Charles Rempel
Dampp-Chaser Corp.
HENDERSONVILLE NC
828-692-8271
Charles
------------------------------

Original Message:
Sent: 09-06-2017 16:16
From: Willem Blees
Subject: Tax question

Benjamin

you can work with him, but just be sure you keep your records up to date.  Sooner or later the IRS will look at his figures to ask why is had livingvin a nice house, driving a nice car all over the place for only $20000 a year.

------------------------------
Willem "Wim" Blees, RPT
Mililani, HI 96789

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Send a private message to me with his contact information and I will see about having an agent come by for a knock and talk. Or, you can contact the IRS directly. 
How Do You Report Suspected Tax Fraud Activity? | Internal Revenue Service

Irs		remove preview
How Do You Report Suspected Tax Fraud Activity? | Internal Revenue Service If you have information about an individual or company you suspect is not complying with the tax law, report this activity. View this on Irs >

------------------------------
Garret Traylor
Trinity NC
336-887-4266
------------------------------

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

I agree, the IRS should be informed. Assuming he isn't having you on just for the fun of it, he's guilty of tax evasion (quite a lot of it), plain and simple.

------------------------------
Susan Kline
Philomath, Oregon
------------------------------

Original Message:
Sent: 09-06-2017 17:02
From: Garret Traylor
Subject: Tax question

Send a private message to me with his contact information and I will see about having an agent come by for a knock and talk. Or, you can contact the IRS directly.
How Do You Report Suspected Tax Fraud Activity? | Internal Revenue Service

Irs		remove preview
How Do You Report Suspected Tax Fraud Activity? | Internal Revenue Service If you have information about an individual or company you suspect is not complying with the tax law, report this activity. View this on Irs >

------------------------------
Garret Traylor
Trinity NC
336-887-4266

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check. 

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know. 

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Thanks for the link Garret. I will check it out. 

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.) 

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link. 

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income". 

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com
------------------------------

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007
------------------------------

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Sam,

Workman's comp is strictly for employees as far,as I know, though you can purchase a policy that will pay you a percentage of your AGI should you become unable to work. I highly doubt it is worth it though unless you are making oodles of $.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com
------------------------------

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Thank you Peter.  That's what I thought also, until I was recently told by a restoration company representative that to do business with them, I must have liability insurance  (which of course I do) and workman's comp.  They said if I did not have workman's comp that they would deduct 15% of my check.  In 42 years this is the first I've heard of this.  So either I'm not listening or somebody doesn't know what they're talking about.  You're absolutely right about the cost.  I checked with my insurance man in the most economical way to go is $1500 a year.

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007
------------------------------

Original Message:
Sent: 09-08-2017 09:03
From: Peter Grey
Subject: Tax question

Sam,

Workman's comp is strictly for employees as far,as I know, though you can purchase a policy that will pay you a percentage of your AGI should you become unable to work. I highly doubt it is worth it though unless you are making oodles of $.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Each state has it's own requirements for workman's comp.  When I was in St. Louis, I wasn't required to get it because I had less than 6 employees. Here in Hawaii, employers need to have it with just one employee. I've never heard of self employed people needing it. If a subcontractor requires it, it must be a blanket policy they have, and probably very seldom deal with self employed individuals .I would ask to speak to a supervisor.

------------------------------
Willem "Wim" Blees, RPT
Mililani, HI 96789
------------------------------

Original Message:
Sent: 09-08-2017 09:26
From: Samuel Lewis
Subject: Tax question

Thank you Peter.  That's what I thought also, until I was recently told by a restoration company representative that to do business with them, I must have liability insurance  (which of course I do) and workman's comp.  They said if I did not have workman's comp that they would deduct 15% of my check.  In 42 years this is the first I've heard of this.  So either I'm not listening or somebody doesn't know what they're talking about.  You're absolutely right about the cost.  I checked with my insurance man in the most economical way to go is $1500 a year.

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-08-2017 09:03
From: Peter Grey
Subject: Tax question

Sam,

Workman's comp is strictly for employees as far,as I know, though you can purchase a policy that will pay you a percentage of your AGI should you become unable to work. I highly doubt it is worth it though unless you are making oodles of $.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Yes, it sounds to me like this company simply has a standard policy for dealing with subcontractors with no allowance for variation. This reduces the need for decision making and eliminates the possibility of one contractor finding out that another one was NOT required to have it and therefore coming back and demanding similar treatment. "Our way or the highway".

There is some wisdom behind this.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com
------------------------------

Original Message:
Sent: 09-08-2017 13:14
From: Willem Blees
Subject: Tax question

Each state has it's own requirements for workman's comp.  When I was in St. Louis, I wasn't required to get it because I had less than 6 employees. Here in Hawaii, employers need to have it with just one employee. I've never heard of self employed people needing it. If a subcontractor requires it, it must be a blanket policy they have, and probably very seldom deal with self employed individuals .I would ask to speak to a supervisor.

------------------------------
Willem "Wim" Blees, RPT
Mililani, HI 96789

Original Message:
Sent: 09-08-2017 09:26
From: Samuel Lewis
Subject: Tax question

Thank you Peter.  That's what I thought also, until I was recently told by a restoration company representative that to do business with them, I must have liability insurance  (which of course I do) and workman's comp.  They said if I did not have workman's comp that they would deduct 15% of my check.  In 42 years this is the first I've heard of this.  So either I'm not listening or somebody doesn't know what they're talking about.  You're absolutely right about the cost.  I checked with my insurance man in the most economical way to go is $1500 a year.

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-08-2017 09:03
From: Peter Grey
Subject: Tax question

Sam,

Workman's comp is strictly for employees as far,as I know, though you can purchase a policy that will pay you a percentage of your AGI should you become unable to work. I highly doubt it is worth it though unless you are making oodles of $.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

The thing about cash payments is there is no paper trail for the IRS to follow.  Technically, since it is income, it should be included in what you received for payment of services provided.  I know many who do not report it and many who do report it.

------------------------------
Clarence Zeches
Piano Service Enterprise School of Technology
Toccoa GA
706-886-4035
------------------------------

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Gentletuners,

Please remember that the IRS are not completely staffed with idiots.  Not reporting cash might be a good idea if it was untraceable, but is it?
Your bank accounts and credit card statements should be considered public record as the IRS should be able to access them easily enough, but there are other records that can betray you.  What if you are asked to show your appointment calendar or allow access to your Cloud-based scheduling information?  Would there be suspicious appointments there with no income?  What about the mileage log that we are all required to keep for every job?  Would there be an income attached to every business trip?  Would your household expenses add up to the amount that you are reporting?

Honesty may be more expensive but it is far safer.

------------------------------
Blaine Hebert
Duarte CA
626-795-5170
------------------------------

Original Message:
Sent: 09-09-2017 15:26
From: Clarence Zeches
Subject: Tax question

The thing about cash payments is there is no paper trail for the IRS to follow.  Technically, since it is income, it should be included in what you received for payment of services provided.  I know many who do not report it and many who do report it.

------------------------------
Clarence Zeches
Piano Service Enterprise School of Technology
Toccoa GA
706-886-4035

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

I thought about this when I first started to tune for money. Almost all jobs were paid for by checks. Should I let a little dab of cash -- five or ten dollars? -- stick to my pocket after a minor service?

I decided that my self respect was worth a lot more.

------------------------------
Susan Kline
Philomath, Oregon
------------------------------

Original Message:
Sent: 09-10-2017 00:23
From: Blaine Hebert
Subject: Tax question

Gentletuners,

Please remember that the IRS are not completely staffed with idiots.  Not reporting cash might be a good idea if it was untraceable, but is it?
Your bank accounts and credit card statements should be considered public record as the IRS should be able to access them easily enough, but there are other records that can betray you.  What if you are asked to show your appointment calendar or allow access to your Cloud-based scheduling information?  Would there be suspicious appointments there with no income?  What about the mileage log that we are all required to keep for every job?  Would there be an income attached to every business trip?  Would your household expenses add up to the amount that you are reporting?

Honesty may be more expensive but it is far safer.

------------------------------
Blaine Hebert
Duarte CA
626-795-5170

Original Message:
Sent: 09-09-2017 15:26
From: Clarence Zeches
Subject: Tax question

The thing about cash payments is there is no paper trail for the IRS to follow.  Technically, since it is income, it should be included in what you received for payment of services provided.  I know many who do not report it and many who do report it.

------------------------------
Clarence Zeches
Piano Service Enterprise School of Technology
Toccoa GA
706-886-4035

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

Blaine wrote:
"Honesty may be more expensive but it is far safer."

Amen.

Alan

------------------------------
Alan Eder, RPT
Herb Alpert School of Music
California Institute of the Arts
Valencia, CA
661.904.6483
------------------------------

Original Message:
Sent: 09-10-2017 00:23
From: Blaine Hebert
Subject: Tax question

Gentletuners,

Please remember that the IRS are not completely staffed with idiots.  Not reporting cash might be a good idea if it was untraceable, but is it?
Your bank accounts and credit card statements should be considered public record as the IRS should be able to access them easily enough, but there are other records that can betray you.  What if you are asked to show your appointment calendar or allow access to your Cloud-based scheduling information?  Would there be suspicious appointments there with no income?  What about the mileage log that we are all required to keep for every job?  Would there be an income attached to every business trip?  Would your household expenses add up to the amount that you are reporting?

Honesty may be more expensive but it is far safer.

------------------------------
Blaine Hebert
Duarte CA
626-795-5170

Original Message:
Sent: 09-09-2017 15:26
From: Clarence Zeches
Subject: Tax question

The thing about cash payments is there is no paper trail for the IRS to follow.  Technically, since it is income, it should be included in what you received for payment of services provided.  I know many who do not report it and many who do report it.

------------------------------
Clarence Zeches
Piano Service Enterprise School of Technology
Toccoa GA
706-886-4035

Original Message:
Sent: 09-08-2017 08:31
From: Samuel Lewis
Subject: Tax question

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007

Original Message:
Sent: 09-06-2017 21:56
From: Peter Grey
Subject: Tax question

Benjamin,

If you asked the IRS if they consider it income if you found a dollar bill on the street and put it in your pocket, they would say: "Yes, that is unearned income and should be reported as part of your taxable income".

So, as you indicated, the IRS is not stupid. They are aware of most of what goes on know what you are doing, and they tend to wait long enough so that you think you got away with it (if you're trying to get away with something). Then, if they figure they have a significant enough case, they'll audit you. Your T's better be crossed and your i's dotted or you are going to be in for a big surprise.  Better to follow the rules.

General consensus is that a EA is better to have since they are licensed by the IRS and are more likely to be assumed to be honest and upright (by the IRS). They tend to follow the rules pretty close otherwise they risk losing their license. I have had an EA for the last 30+ years. The idea is that if the IRS sees an EA signature on the return, they are less likely to flag it.

Honesty is the best policy. Tax avoidance is legal and ethical and is not the same as tax evasion (which is not legal nor ethical).  Do all you can to avoid paying taxes, but pay what you need to.

Pwg

------------------------------
Peter Grey
Stratham NH
603-686-2395
pianodoctor57@gmail.com

Original Message:
Sent: 09-06-2017 19:55
From: Benjamin Sanchez
Subject: Tax question

Thanks for the link Garret. I will check it out.

Susan and Gary,

Thats the thing, I'm not sure if he's joking or telling the truth. I know he was trying to scare me out of the area; maybe he was trying to get me to do something dishonest so that he could report me. (I've always tried to abide by the rules the IRS has laid down, though, and haven't tried to cheat them. They're not stupid, and neither am I.)

No, he never actually harassed me, and has left me alone once he got the point that I was here to stay. So, that leads me back to: was he joking, talking about social security, trying to find dirt on me, etc? All things considered, I will check out the link.

Thanks for the advice,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net

Original Message:
Sent: 09-06-2017 17:38
From: Gary Bruce
Subject: Tax question

Sounds dishonest,  but he may have been talking about paying social security, depending on how he's taking dividends he may have only paid social security on 20K.

Gary Bruce
Registered Piano Technician

Original Message------

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

And, if the client is a performing musician and claims a deduction for your fee on his or her 1040, the pup (you) has been caught inflagrante. Don't poke the bear . . .

Best,
Jim


Original Message------

Gentletuners,

Please remember that the IRS are not completely staffed with idiots.  Not reporting cash might be a good idea if it was untraceable, but is it?
Your bank accounts and credit card statements should be considered public record as the IRS should be able to access them easily enough, but there are other records that can betray you.  What if you are asked to show your appointment calendar or allow access to your Cloud-based scheduling information?  Would there be suspicious appointments there with no income?  What about the mileage log that we are all required to keep for every job?  Would there be an income attached to every business trip?  Would your household expenses add up to the amount that you are reporting?

Honesty may be more expensive but it is far safer.

------------------------------
Blaine Hebert
Duarte CA
626-795-5170
------------------------------

Original Message------

On a related topic, does anybody know if, as sole proprietors, we are required to carry workman's comp?  I'm getting conflicting answers on this.  I don't understand why we would have to because we have no employees.  As far as I know, in the event of disability we can't collect workers' comp anyway.  Thank you in advance for your insight

------------------------------
Sam Lewis
Sam Lewis Piano
White Bluff TN
615-417-7007
------------------------------

From his comment we can safely presume that this other technician is also not collecting and remitting state sales tax.  That makes two unfair competitive advantages.

------------------------------
Kent Burnside, RPT
Franklin TN
615.430.0653
------------------------------

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------

And the State of California would not be amused.

------------------------------
Susan Kline
Philomath, Oregon
------------------------------

Original Message:
Sent: 09-07-2017 07:47
From: Kent Burnside
Subject: Tax question

From his comment we can safely presume that this other technician is also not collecting and remitting state sales tax.  That makes two unfair competitive advantages.

------------------------------
Kent Burnside, RPT
Franklin TN
615.430.0653

Original Message:
Sent: 09-06-2017 13:54
From: Benjamin Sanchez
Subject: Tax question

Hello all,

A few months ago I had a non PTG technician tell me that he don't have to pay taxes on any cash he earned. He then went on to say that he had verified this with a CPA, who added that being paid in check counts as being paid in cash -- so (according to him) you don't have to pay taxes on anything you are paid for with cash or check.

I firmly believe that skipping on taxes is wrong and unethical. I suppose I was wondering what the IRS's official stand on this is (what counts as income), if any of you know.

And, how to ensure I find an honest and honorable tax person. If that's really the IRS standard, I should have heard of it before. And if that's not the IRS standard, as I believe is correct, then that CPA either doesn't know what he's doing, or is purposefully cheating the Feds. In either case, I don't what to work with a person like that. Any suggestions?

Thanks in advance,

------------------------------
Benjamin Sanchez
Professional Piano Services
(805)315-8050
www.professional-piano-services.com
BenPianoPro@comcast.net
------------------------------