| Author |
Message |
Guest
|
 Posted:
Mon Oct 24, 2005 8:00 am Post subject:
Collecting money for someone online |
|
|
My friend wants me to collect some money for him online
since I have paypal business account that lets people send
money with credit card. He then wants me to wire this money
internationally . The total amount is around 5k dollars
collected over 2 weeks. I am assuming I owe no taxes since I
am providing a service to him for free and am actually
covering the paypal fees. So could I deduct the paypal fees
as an expense on my business tax return?
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >>
|
|
| Back to top |
|
 |
Herb Smith
Guest
|
| Posted:
Mon Oct 24, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
el_roachmeister@yahoo.com wrote:
| Quote: | My friend wants me to collect some money for him online
since I have paypal business account that lets people send
money with credit card. He then wants me to wire this money
internationally . The total amount is around 5k dollars
collected over 2 weeks. I am assuming I owe no taxes since I
am providing a service to him for free and am actually
covering the paypal fees. So could I deduct the paypal fees
as an expense on my business tax return?
|
First, why would you want to do this, especially if it costs
you additional fees?
Since these fees were not a legitimate expense of your
business, I see no reason that they would be deductible on
either your personal or business return.
It is a simple matter for your friend to open his own
PayPal account (unless he has no credit standing), and
collect his own money. You are being too naive.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
rick++
Guest
|
| Posted:
Wed Oct 26, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
Hopefully this a "friend" you met and worked with before.
Because this scheme is one of the biggest internet scams
these days. One version is really laundering money and
goods for stolen credit card numbers. A "friend" gets a
commision for supplying a gateway account. Another version
finds payments in phoney cashier checks.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >>
|
|
| Back to top |
|
|
Lanny K Williams CPA
Guest
|
| Posted:
Wed Oct 26, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
el_roachmeister@yahoo.com wrote:
| Quote: | My friend wants me to collect some money for him online
since I have paypal business account that lets people send
money with credit card. He then wants me to wire this money
internationally . The total amount is around 5k dollars
collected over 2 weeks. I am assuming I owe no taxes since I
am providing a service to him for free and am actually
covering the paypal fees. So could I deduct the paypal fees
as an expense on my business tax return?
|
Who is paying this money to your friend? and why?
A few years ago, a client of mine let a friend run some of
his receipts on my client's credit card account at the bank.
These charges were either fraudulent or disputed and were
charged back to my client's account. By then, though, he
had already transferred the money to his friend and had no
funds to cover the chargebacks. Eventually, the bank sued
and my client had to remortgage his house to cover. His
credit card account was canceled and his personal credit was
ruined.
Some friend!!
Be careful!!
Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Seth Breidbart
Guest
|
| Posted:
Wed Oct 26, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
<el_roachmeister@yahoo.com> wrote:
| Quote: | My friend wants me to collect some money for him online
since I have paypal business account that lets people send
money with credit card.
|
How well do you know this "friend"?
| Quote: | He then wants me to wire this money
internationally .
|
What happens if the sender later decides that he didn't
actually authorize the transfer; do you have a way to get
the money back from your "friend"?
| Quote: | So could I deduct the paypal fees
as an expense on my business tax return?
|
Not if there's no business purpose for paying the fees. (If
you were told you were entitled to keep some of the money,
then there would be a business purpose and I'd be certain it
was a scam.)
Seth
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Guest
|
| Posted:
Wed Oct 26, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
Well I am collecting money for relief funds for an
international disaster. Given the time sensitivity it would
not be possible for my friend to open a paypal business
account, plus he is not too computer literate. Is there some
tax law that says donations during international disasters
are automatically tax deductible. Its not a big deal , but
it would seem kind of silly to require people only to donate
to registered 501 non profits after a disaster, no?
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Guest
|
| Posted:
Wed Oct 26, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
[To the Moderator: Sorry; I cannot stop myself on this one.]
Moderator: I thought it was right on the money.
Let's see if I have this right. Your friend does not want
to, or cannot, set up a PayPal account. You will allow him
to use your PP account, but he will not even pay you back
the cost of the fees. (Or, rather, let you deduct the PP
fees and cost of the wire from the $5K you collect from
him.) These fees are not part of your business, but you
want to deduct them from your income.
Let me think - OK, done thinking. The answer is NO, you
cannot deduct these non-business fees on your business tax
return. Further, you cannot deduct these fees on any kind
of return you can name. They are personal expenditures and,
frankly, you know it.
But let me take a wild guess. When you get audited by the
IRS, you'll be "honest" with the agent and admit that the
expenses really weren't yours. (Reference to "Small Income"
post you asked a while back.) Heck, he'll probably just slap
you on the back and give a hearty laugh while he says, "Good
try!!"
Since you clearly did not want to take the advice given on
the Small Income question you had, and since you clearly
want to continue to ask if you can *_____* (insert nice word
for cheat) on your income tax return, the advice I am giving
myself and to other MTM participants is to ignore your
posts.
I would normally suggest that you post on the unmoderated
misc.taxes, but you already did post this question there on
10/13 and you saw what that devolved into. As you can see,
there really is no place for posts like this.
Peter C. Gatto, CPA
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
TaxSrv
Guest
|
| Posted:
Thu Oct 27, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
<el_roachmeister@yahoo.com> wrote:
| Quote: | Its not a big deal , but it would seem kind of silly
to require people only to donate to registered 501
non-profits after a disaster, no?
|
Yeah, right. Just as silly to think that gov't -- in giving
out preloaded ATM cards to actual disaster victims -- should
imagine that some who, after failing to get multiple cards,
will still use them to buy luxury items. Allowing
charitable tax deductions for pmts to whomever would result
in a worse drain on the Treasury, as abuse will not be
reserved for those of a criminal mind.
Fred F.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
rick++
Guest
|
| Posted:
Thu Oct 27, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
Hopefully this a "friend" you met and worked with before.
Because this scheme is one of the biggest internet scams
these days. One version is really laundering money and
goods for stolen credit card numbers. A "friend" gets a
commision for supplying a gateway account. Another version
finds payments in phoney cashier checks.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Lanny K Williams CPA
Guest
|
| Posted:
Thu Oct 27, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
el_roachmeister@yahoo.com wrote:
| Quote: | My friend wants me to collect some money for him online
since I have paypal business account that lets people send
money with credit card. He then wants me to wire this money
internationally . The total amount is around 5k dollars
collected over 2 weeks. I am assuming I owe no taxes since I
am providing a service to him for free and am actually
covering the paypal fees. So could I deduct the paypal fees
as an expense on my business tax return?
|
Who is paying this money to your friend? and why?
A few years ago, a client of mine let a friend run some of
his receipts on my client's credit card account at the bank.
These charges were either fraudulent or disputed and were
charged back to my client's account. By then, though, he
had already transferred the money to his friend and had no
funds to cover the chargebacks. Eventually, the bank sued
and my client had to remortgage his house to cover. His
credit card account was canceled and his personal credit was
ruined.
Some friend!!
Be careful!!
Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Seth Breidbart
Guest
|
| Posted:
Thu Oct 27, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
<el_roachmeister@yahoo.com> wrote:
| Quote: | My friend wants me to collect some money for him online
since I have paypal business account that lets people send
money with credit card.
|
How well do you know this "friend"?
| Quote: | He then wants me to wire this money
internationally .
|
What happens if the sender later decides that he didn't
actually authorize the transfer; do you have a way to get
the money back from your "friend"?
| Quote: | So could I deduct the paypal fees
as an expense on my business tax return?
|
Not if there's no business purpose for paying the fees. (If
you were told you were entitled to keep some of the money,
then there would be a business purpose and I'd be certain it
was a scam.)
Seth
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Guest
|
| Posted:
Thu Oct 27, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
Well I am collecting money for relief funds for an
international disaster. Given the time sensitivity it would
not be possible for my friend to open a paypal business
account, plus he is not too computer literate. Is there some
tax law that says donations during international disasters
are automatically tax deductible. Its not a big deal, but it
would seem kind of silly to require people only to donate to
registered 501 non profits after a disaster, no?
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Harlan Lunsford
Guest
|
| Posted:
Thu Oct 27, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
el_roachmeister@yahoo.com wrote:
| Quote: | Well I am collecting money for relief funds for an
international disaster. Given the time sensitivity it would
not be possible for my friend to open a paypal business
account, plus he is not too computer literate. Is there some
tax law that says donations during international disasters
are automatically tax deductible. Its not a big deal , but
it would seem kind of silly to require people only to donate
to registered 501 non profits after a disaster, no?
|
WHOA now! Run, don't walk, to the nearest exit and get out
of this scheme.
(I had wanted to ask orginally if your friend were Nigerian,
but didn't get around to it.)
Anyway, it's highly likely that this is an international
scam where people who have a good heart are talked into
contributing for international disaster relief. (What is
is, the Pakistani earthquake?)
At any rate, contributions to this would not be tax
deductible here in the US of A. To be deductible,
contributions even for international purposes must be
through qualified US charities, and not by such a circuitous
route in cyber land.
Your fiend being computer illiterate, sounds like he's crazy
like a fox. OH, I used the word "fiend", for "friend."
nevermind, it might just fit.
And as for "given the time sensitivity" (a phrase which
sounds like it was translated badly) means he wants to get
the money and run before the law comes after him.
ChEAr$,
Harlan Lunsford, EA n LA
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Seth Breidbart
Guest
|
| Posted:
Thu Oct 27, 2005 8:00 am Post subject:
Re: Collecting money for someone online |
|
|
<el_roachmeister@yahoo.com> wrote:
| Quote: | Well I am collecting money for relief funds for an
international disaster. Given the time sensitivity it would
not be possible for my friend to open a paypal business
account,
|
That took me about 5 minutes.
| Quote: | plus he is not too computer literate. Is there some
tax law that says donations during international disasters
are automatically tax deductible.
|
No.
| Quote: | Its not a big deal , but
it would seem kind of silly to require people only to donate
to registered 501 non profits after a disaster, no?
|
No, it isn't silly. There are plenty of registered
501(c)(3) organizations that deal with disasters.
And nobody is required to donate to anybody; the only issue
is tax deductibility. (Generally, when a new organization
gets a 501(c)(3) approval, it's retroactive.)
Seth
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
Harlan Lunsford
Guest
|
| Posted:
Thu Oct 27, 2005 8:01 am Post subject:
Re: Collecting money for someone online |
|
|
pgattocpa@excite.com wrote:
(snipped)
| Quote: | Since you clearly did not want to take the advice given on
the Small Income question you had, and since you clearly
want to continue to ask if you can *_____* (insert nice word
for cheat) on your income tax return, the advice I am giving
myself and to other MTM participants is to ignore your
posts.
I would normally suggest that you post on the unmoderated
misc.taxes, but you already did post this question there on
10/13 and you saw what that devolved into. As you can see,
there really is no place for posts like this.
|
AHAH! now it all makes sense, Pete.
You know, I think it's we who have been set up to answer
these posts.
ChEAr$,
Harlan Lunsford, EA n LA
Moderator:
Tax cheats and scams belong at the Comedy Club, misc.taxes,
which I rarely read anymore.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
|
|
|
|
FAQ
Memberlist
Register
Profile
Log in to check your private messages
Log in