Hmmm. I was looking around here and even used the "search" button as everyone says around here.

Anywho, I didn't find anything relevant to the topic.

QUESTION: what exactly do you do going about internet taxes?
2) Do you even pay taxes?
3) If no, could it be harmful and could you be taken to court?
4) How much trouble could you get in for not paying income taxes?
5) If you own a business, can you reduce taxes by any business purchases you make? I.E. servers, equipment, etc.

Thank you a ton. Really grateful for the help here. This forum is great!

Really, it entirely depends on your location. FOr instance, in Pennsylvania, where I live, I believe web services cannot be taxed. Try Googling for your state's website.

1. You do not have to pay sales tax, however you must report and pay taxes for all income, regardless of the source.
2. Yes - If someone didn't pay taxes, well, the government would easily notice.
3. You can get in a lot of trouble, especially if the IRS decides to audit you. Yes you can be taken to court, but you can also (4.) be thrown in jail for tax evasion.
5. You can deduct expenses such as servers, office supplies, software etc.

If you're unsure about ANYTHING regarding taxes, I suggest you talk to a tax professional - You can probably find some help at your local H&R Block if you don't want to take the time and find an accountant. A professional can REALLY help in terms of doing your taxes properly, especially if you run your own business. If you're self employed, you have to pay self-employment tax, which is around 7% extra. Normally, it's automatically taken out of your paycheck if you're an employee for Social Security and Medicare, but if you run your own business, it's your responsibility to pay it directly. Hope this helped.

-Josh
(Note: I am not a lawyer or CPA - This is not ment to be construed as advice from such a person. Always contact a professional before acting on any advice given by non-professionals) :D

I don't think anyone in their right mind will post here publically that they do not pay taxes

the IRS (or whoever it is iwherever you live) is not someone you want crawling up your *** with a fine tooth pick

Greetings:

Yes, we pay taxes et all business license fees etc.

Thank you.

It makes me laugh when I meet people who run an "internet business" and they think they're so smart because they don't pay taxes.

Did you know that if the government even THINKS you purchased your house/car/boat/shoes/socks and can't prove your income that you will be audited.

They WILL send you a bill if you can't prove how you made the money you used to purchase these things.

There are few things that are absolutes in life, and one of the big "sure things" is that if you are in business long enough.. you WILL personally meet a tax auditor. At that point, if you haven't been paying your taxes.... well good luck to you.

If you're doing web hosting (or any internet business) and are starting to make "decent money", then go spend some of that money on a GOOD accountant and ask them to explain the tax rules to you. If they don't know, then go find another accountant who does. If you intend to stay in business, then it will be worth your money and time.

Cheers!

If you are running a business then I think you should find an accountant. Save you lots of trouble/work in the long run.