Q and A With the Author
Q: Who is this book for?
A: This book is for any individual interested in pursuing online income. It is generally written as a small business tax guide. The examples are what mainly gear it toward online sellers. I did, however, make a point to touch on every question or concern I have ever heard online sellers pose. I also included things extensive research taught me auditors are on specific look-out for when it comes to ecommerce taxes.
Q: Why did you write this book?
A: I want to inform online sellers about their taxes due and how to go about filing them. Many online sellers do not even understand they need to claim their income. Still others have no clue how to do so. The IRS is specifically on the look-out for sellers not reporting online income or taking improper deductions. A common debate amongst sellers is how to account for income and expenses associated with selling on the internet. There is a need for this book, as no other existed to teach the individual online seller how to file their taxes properly.
Q: What is something you want the reader to know about your book?
A: Another topic this book covers is deducting expenses. Once a seller reports their income, they will be taxed on it. It is important taxpayers understand they can get that tax liability down by deducting expenses. There is no magic potion telling them how they can stick a filing cabinet in the corner and call it a home office in this book. Instead, I wanted to educate individuals on the legitimate ways to take these deductions.
Q: What is your ultimate goal in writing this book?
A: Well, to have something else to sell online, of course. No, seriously – My ultimate goal is to ensure the continued ability for individuals to pursue income as third party sellers on the internet. eCommerce makes life smoother and more convenient for Americans. If tax law enforcement scares people away from pursuing internet income, it could dramatically change the options buyers have available to them.
As a tax researcher, I can tell you the tax laws can be as complicated as you assume they are. I wanted to give the average person trying to make a buck online, an instruction manual. How to be legitimate and not fearful of the IRS can actually be simple. My book attempts to make the learning process as painless as possible. It explains tax lingo in plain English, and answers all the common questions I’ve ever heard asked.
Q: What is something an online seller can do today to help with tax compliance?
A: First and foremost, keep records! Even if the product you’re selling was purchased from a yard sale, you can journal that expense. Make spreadsheets your new friends. Write down everything, and keep all receipts. If you are completely unorganized, you can make some sense of it all later. You can’t, however, remember everything you did last year come tax season. That being the case, at the very least, those receipts, notes, and spreadsheets will help you, or your tax preparer, put all your ducks in a row come April.
Q: Are there any new developments concerning internet taxes the reader should know?
A: Most definitely. The IRS has set its sites on online sellers not reporting their income. They are already able to subpoena records from online venues, but the 2008 proposed federal tax budget proposes online brokers now start sending statements of your earnings directly to the IRS each year. Many of the millions of people selling on the internet do not even realize taxes are due on their online income. Sellers need to find out how to properly account for their income and expenses now, before they find themselves the target of an audit.
Q: What are your qualifications? Who are you?
A: I am a tax researcher, online seller, and author. I am not a tax professional, but have spent a great deal of time doing extensive research on the tax code and regulations. My family and I reside outside of Nashville, TN. I have two daughters. My life is comprised of being surrounded by family, but never having enough time to enjoy them. I work from home aside from scouting for inventory and professional engagements which often take me out of town. I am living my dreams.
Permission to use or excerpt with proper attribution
Simon Elisha, author, Taxes for Online Sellers - A How-To Guide for Individuals on Federal Tax for Internet Sales
ISBN: 978-0-9796328-0-8
