Agency Based Discussion > Envato
Another Envato Tax question....
sgoodwin4813:
I see what you're saying but there's a big difference between money in the account of a stock agency and your bank account. Let's take DT for an example. They don't pay out until you request it. Usually I just let the money there accumulate and request a big payout once a year in December. One year it took them a while to process the request and they didn't actually make the payout until January. So I had zero income from them for the year before but had to report that money during the next year. The IRS only knows what is reported on the 1099 so it makes no difference to them either way. I'm not an accountant, but I assume companies have categories for money earned and not paid out, which probably complicates the books. I assume that is why many agencies go to automatic payouts above a limit to minimize the amounts in limbo. The money has been credited, but not earned for tax purposes until it has been paid, except at FT and Envato. To be safe I go with the 1099 because that is what the IRS knows about. It certainly is confusing though.
niktol:
As far as I know (and if I understand it correctly), there is cash based accounting and accrual based accounting. Cash based accounting works with money received (on your bank account) and works better with small businesses and individuals. Accrual based accounting accounts for "work done and services performed" and should account for money that agencies owe you. This is what large corporations typically use. I don't know how it works in the US and with IRS, but I thought it was fairly universal.
That's probably why these unfortunate $16 dollars are on the books as "paid", at least for tax purposes. Just because noone "came to collect" does not change the accounting protocol. It has nothing to do with "tax evasion", get serious.
Gel-O Shooter:
The account was closed and that $16 went right back into Envato's bank account. It is not in "my" account and I do not have access to it, nor did I ever have access to it. So that is $16 in income to Envato that they have falsely claimed was paid to someone else and they evidently will not pay taxes on, since the tax bill was sent to me.
I think that failure to report all income and falsely claiming that it was paid to someone else is tax evasion. And yes, I am serious.
We'll see what the IRS has to say about it.
niktol:
--- Quote from: Gel-O Shooter on March 30, 2017, 09:32 ---
The account was closed and that $16 went right back into Envato's bank account. It is not in "my" account and I do not have access to it, nor did I ever have access to it. So that is $16 in income to Envato that they have falsely claimed was paid to someone else and they evidently will not pay taxes on, since the tax bill was sent to me.
I think that failure to report all income and falsely claiming that it was paid to someone else is tax evasion. And yes, I am serious.
We'll see what the IRS has to say about it.
--- End quote ---
I doubt it can be considered tax evasion. I think they are clean before IRS hence the 1099. Just because an account/balance wasn't paid does not make them tax evaders, otherwise millions of people who did not pay their balance on time would automatically become tax evaders because the companies may still have to report those balances as income. I doubt IRS cares about who owes who what, just as long as they get their cut. Evading taxes is not the same as shifting the burden to someone else, to you in this case. The income isn't unreported, it is reported as earned by you. Technically I think it's a matter of a small claims court, so if you wanna fight windmills, there is your destination.
But hey, prove me wrong, I don't mind at all.
sweetgirll:
Denounce them for what?
They are probably doing this legally, they are not stupid.
But why make it so complicated????
A phone to the IRS can quickly give you the right answer.
Yeah, a phone call.
Believe it or not, the IRS folks are really nice on the phone, and you could explain the situation and I'm sure they can transfer you to the right deparment.
--- Quote from: Chichikov on March 28, 2017, 10:10 ---Denounce them to the tax office for fraud!
--- End quote ---
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