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Venue pays with a check. ..
- Thread starter kikstand454
- Start date
Soooooo...... maybe the best thing for BL to do is to just accept all checks written to him, file all apporpiate 1099s, and then hand a bill to each of the other two members for 33% of what the BL pays to the IRS.
To the best of my knowledge, The BL still files 1040a and never has itemized a thing in his/her life. So maybe this approach would be the easiest? Just take the hit on their refund?
To the best of my knowledge, The BL still files 1040a and never has itemized a thing in his/her life. So maybe this approach would be the easiest? Just take the hit on their refund?
I never report musical income to the IRS. Efff the IRS!
No.
If you make an arrangement to play a club for $300, as long as the club pays you, it's none of your business what else they do.
I'm sure that my friend the BL feels the same way- but unfortunately now after 20+ years of the biz. .... his venues are starting to pay with traceable money. Alas- when the venue claims you as an employee, you cannot respond to the IRS with a simple one finger salute.
This attitude always cracks me up. First, you are effing yourself because social security is based on income, so when you don't report income it effects your social security payment when you retire. And second you are effing the rest of us who actually do pay taxes when you don't pay your legally obligated share.
Congress makes the tax laws, the IRS only enforces them. Getting mad at the IRS doesn't make any sense at all.
The Secretary of State Link Removed on February 25, 1913, 26 U.S.C. § 1 imposes tax on taxable income, 26 U.S.C. § 63 defines taxable income as gross income minus allowed deductions, 26 U.S.C. § 61 defines gross income as all income from whatever source derived, and 26 U.S.C. § 6012 requires the filing of returns by every individual with gross income for the year (with some exceptions). [Invalid or Expired Link Removed] have upheld the federal government's power to collect income taxes against just about every argument.
The Revenue Act of 1862 established a Commissioner of Internal Revenue which is now called the IRS.
Revenue Act of 1862 - Wikipedia, the free encyclopedia
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Big Hoss
Up note, down note, blue note, brown note...
- Sep 5, 2014
- 5,455
- 4,234
- Disclosures
- None
I understand the frustration... But gigging for effectively free with a 3 piece band, he might as well just gig for free period and do what he wants...
Big Hoss
Up note, down note, blue note, brown note...
- Sep 5, 2014
- 5,455
- 4,234
- Disclosures
- None
Is it smart to admit something like that in an online forum?
Glad you got a laugh out of my post..
When you figure taxes equate to 33% along with inflation rates on the SS I would be getting I'd rather keep my money as it is worth more today than it will be in years to come (assuming I'll live that long anyhow) if you feel this attitude is unfair to the rest of those who choose too participate in this scam I have only two things two say. 1) I'm not forcing you to file or pay taxes, and 2) I'm don't care whats fair to you. I'm concerned about my well being, and happiness first.. Call it selfish, but its the attitude most everyone has, and practices. I'm just honest about it.
I'm sure that the people who don't want to pay taxes won't be using our roads, police protection, firefighters, don't want to be protected by our military, or avail themselves of any of the other services the rest of us are paying for. They will just climb in a bubble and be self-sufficient.
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Amendment 16 to the U.S. Constitution, ratified on February 3, 1913, provides, "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
Section 1 of The Internal Revenue Code of 1986, 26 U.S.C. 1, imposes income tax on individuals. Section 63 defines how taxable income is defined for individuals.
The provisions regarding the actual payment of taxes are set forth in subtitle F of the Internal Revenue Code, in chapters 61-64. Specifically, the obligation to pay tax is described in section 6151, which requires taxpayers to submit payment with their tax returns.
Section 7801 of the Internal Revenue Code authorizes the Secretary of the Treasury to administer and enforce the Internal Revnue Code. Specifically, that section provides, "the administration and enforcement of this title [i.e., the Internal Revenue Code] shall be performed by or under the supervision of the Secretary of the Treasury." Section 7803(a)(1)(A) of the Internal Revenue Code provides for a Commissioner of Internal Revenue in the Department of the Treasury. Section 7803(2) outlines the duties of the Commissioner of Internal Revenue, which include the power to "administer, manage, conduct, direct, and supervise the execution and application of the internal revenue laws or related statutes ...." Section 7804(a) authorizes the Commissioner to "employ such number of persons as the Commissioner deems proper for the administration and enforcement of the internal revenue laws, and the Commissioner shall issue all necessary directions, instructions, orders, and rules applicable to such persons."
The IRS was created pursuant to that statutory authority.
Court decisions have repeatedly confirmed that the IRS is an agency of the United States. See, e.g., United States v. Fern, 696 F.2d 1269, 1273 (11th Cir. 1983) ("[c]learly, the Internal Revenue Service is a ‘department or agency’ of the United States"); Salman v. Dept. of Treasury, 899 F.Supp. 471, 472 (D. Nev. 1995) (describing contention that the IRS is not a government agency of the United States as “wholly frivolous”); Young v. IRS, 596 F.Supp. 141, 147 (N.D. Ind. 1984) (granting summary judgment in favor of the government, rejecting Young’s claim that the IRS is a private corporation, rather than a government agency).
Slow down guys.
Don't get my thread closed by going political or incriminating yourselves please .
I feel this is a relevant issue to discuss as its the day after tax day and all us lazy musicians filed extensions..... lets keep it civil.
How does your band specifically deal with taxes? !
Don't get my thread closed by going political or incriminating yourselves please .
I feel this is a relevant issue to discuss as its the day after tax day and all us lazy musicians filed extensions..... lets keep it civil.
How does your band specifically deal with taxes? !
Big Hoss
Up note, down note, blue note, brown note...
- Sep 5, 2014
- 5,455
- 4,234
- Disclosures
- None
I can't speak to current status as I have yet to be in a position where I am gigging again. (Been a long time, did some P&W stuff for free in the past). Generally speaking, due to the nature of my interest in music being P&W, and contemporary country styles just for fun playing with friends and for parties, no money comes my way, but rather are considered charitable contributions. I am in a tax bracket where charitable contribution / expenses make for tax deductions that I can use.
I have done work on 1099-MISC in the past, and simply put, say I get paid as the primary contractor $10,000.00 to do a job, and that job included 6 other guys that made $1,000.00 per person, they get paid by me, and are issued a 1099-MISC on about January 5th once everything is ready to go out to them, and in my 1040 I claim the payments shown on the 1099-MISC to the other guys are deductions, so they are not included in my taxable income, so effectively for the job in question, I might have received a check for $10,000.00, but I get taxed on $4,000.00...
It's a painful bit of accounting, but doing contracting / consulting work, it's what you need to do unless you like getting audited, attached, and potentially jailed...
I'm not saying I am doing everything perfectly, I am saying to the best of my knowledge I comply with the applicable laws. I have no desire to become a long term guest of the state or Federal governments...
In my main gig, the band leader gets paid (cash, check, whatever) and sends an electronic funds transfer (EFT) right to my checking account (a couple days later). By January 31 the band leader sends a 1099. I track that against the year's EFT records, add in whatever outside gig money I log over the year, file a Schedule C to list out my music-related expenses, and pay what I owe. Everyone pays their own taxes, based on their share of what they made for the year.
It's really not that complicated or expensive to do. Sure there's some record keeping. But, between shopping for supplies online and the EFT stuff the records are mostly electronic and easy to recover. The online tax prep sites (like HRBlock) are quite simple and cheap to use.
I can also speak from experience when I say, dealing with this stuff up front makes life much easier when you get one of those "You Owe Us Money" letters from the IRS. If you've never been, know that audits are no fun ...
Doesn't change the fact that there is a tremendous amount of corruption, and waiste..
