Tax Information from the IRS
Dateline: 01/28/98
A few words about the craft industry and taxes...
I know that lots (not all, but way too many) of craftspeople
are a little less than forthright when reporting income to both the IRS and the
state and local agencies. I also know why. It is too darn complicated and
confusing! Those of you who have tried to be honest
with reporting and paying taxes for a show know what I mean. I have been trying to pay the Indiana
taxes on a show we attended in Indianapolis last spring. After trying, by phone to
get the proper paperwork, I simply decided to send a check for the amount owed.
What I got for my honesty was a snide little letter informing me that "It
has come to our attention that you attended a show in our state and did not pay taxes..."
No kidding! I suppose it never crossed the mind of the rocket scientist who
sent this letter that the reason it was "brought to their attention" was the fact that I sent
the letter and check to them! Oh well, bottom line: for reporting a terrible show, who's taxes
roughly amounted to $12.00, I had a four page form to fill out and a $25.00 registration fee to
send.
I know it is a pain, but the cold hard reality is this. You will never get anywhere in this business without paying these people. That said, on with the links...
These links were found when searching the IRS Web site for craft-related tax questions. If you have any to add, send them in and if they are relevant to this feature, I will post.
Tax Trails for Business
Some quick answers for tough questions can be found in this easy to follow hypertext Q & A.
Can You Deduct Business Use Of The Home Expenses?
From "Tax Trails", this question is asked very often in the hand-made industry.
This "interactive q & a" is very helpful in determining an individual answer.
Forms and Publications
Find and download any form you will need here.
State Tax Agency Homepages
Find your local tax agency at this site.
