Every year around this time, I start getting nervous. The fear of getting audited constantly crosses my mind. No accountants around me have a clue about internet marketing. It really is a special niche that most have zero experience with. This is the conversation I had with the last 3 places I called:
ME: Hi, I’m looking to chat with someone experienced with internet marketing income to help me with my taxes.
ACCOUNTANT: ohh, so you run a store?
ME: No, I get paid 1099-misc by many 3rd parties for running their ads and marketing for them.
ACCOUNTANT: Wait, you make money without selling anything?
ME: Yes, I run ads for them on my forums, blogs, and other websites promoting their products, services, etc, of which I get a cut if there’s a sale or a click, depending on the type of ad.
ACCOUNTANT: So you don’t have an inventory?
ME: Thanks for your time.
While I’m sure they are smart with numbers, I simply can’t trust in good faith someone who doesn’t have a clue about the type of business I’m in to make the best business tax choices for me.
On top of all my web income and expenses, I also work W2 with a ‘real’ 9-5 type job. Then, there’s my 401k, my stocks that i’ve bought, sold, and earned dividends on, bank account interest, mortgage interest, my local/state income, property, and car taxes, the percent sq.ft of my dedicated office on my house that I get to write off for a business expense and so on and so forth. At the end of the day, my taxes suck.
To make matters worse, I have an ever-growing pile of tax forms on the floor of my home office.
The worst part is that I’m still expecting a couple forms in the mail.
Do you dread Tax season as much as I do?