pancakes

MicrostockGroup Sponsors


Author Topic: 2012 sales tax audit  (Read 2188 times)

0 Members and 1 Guest are viewing this topic.

« on: April 02, 2018, 10:49 »
0
How do I prove that my 2012 iStock sales were royalties and no sales tax is due?

iStock didn't issue 1099s back then.
« Last Edit: April 02, 2018, 11:31 by Mona »


« Reply #1 on: April 02, 2018, 11:48 »
0
You need a tax license professional specifically if you are being audited. Responding to the IRS on your own may open up a can of worms.

« Reply #2 on: April 02, 2018, 12:27 »
0
Thanks.

My accountant prepared my taxes but I am taking care of this now myself as it appears that she made multiple errors and now claims that she can do no wrong.

This is an audit by the New Mexico Taxation & Revenue for state sales taxes, not for federal taxes.

« Reply #3 on: April 02, 2018, 21:18 »
+1
To answer my own question: You contact PayPal and request old files from 2012 which aren't available any more on their site. The receipts state that they are royalty payments.

« Reply #4 on: April 03, 2018, 01:31 »
0
The difference between royalties and other income is that you do not SELL THE IMAGES, but you sell a LICENSE to USE the images, and you keep the copyright.  To prove that, you may need to show the auditors the contributor agreement and/or the license agreement, in which this is explained.

« Reply #5 on: April 03, 2018, 02:26 »
0
The difference between royalties and other income is that you do not SELL THE IMAGES, but you sell a LICENSE to USE the images, and you keep the copyright.  To prove that, you may need to show the auditors the contributor agreement and/or the license agreement, in which this is explained.

The taxation rules regarding royalties, and what is considered to be royalties, can be very different in different countries. "No sales tax on royalties" is not how it works where I live for example.

The only thing that makes sense is to read up on how to do it where you live, not just the US.


 

Related Topics

  Subject / Started by Replies Last post
Istock sales 2012

Started by dbvirago iStockPhoto.com

15 Replies
4277 Views
Last post June 16, 2012, 13:23
by Gimmerton
50 Replies
9868 Views
Last post July 09, 2012, 13:45
by Difydave
1 Replies
2723 Views
Last post December 27, 2012, 15:44
by Microbius
15 Replies
7436 Views
Last post January 24, 2016, 21:23
by YadaYadaYada
21 Replies
2702 Views
Last post May 14, 2018, 15:56
by flywing

Sponsors

Microstock Poll Results