Direct Sellers and MLM’s! – the IRS is looking for you!
In an ongoing effort to find unreported or underreported revenues, the IRS has now created a video for Direct Sellers and MLM’s.
This video is to “help” you properly record and report your income each year. It also helps you determine if you really have a business or a hobby. (The tax laws treat each differently).
The video Direct Sellers is about an hour long but very information and instructive. It will help you understand the value of getting and keeping your bookkeeping in order and help you understand what the IRS will be looking for in case of an audit.
By the way, the IRS has created an ATG (audit technique guide) for its agents for the Retail Industry. They include Direct Sellers in the Retail Industry. This guide walks agents through the audit process for the Retail industry. If interested, you can view the guide, again quite instructive.
As usual, if you have any questions, please feel free to reach me at 240-356-5050. To Your Financial Health!
Written by JFleming
James Fleming is an accountant and Certified Tax Coach with over 40 years experience working in and with small businesses. His company, Fleming Financial Solutions offers tax planning and preparation, bookkeeping, business and marketing consulting.