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March 12, 2021
Question

I was a sole prop. in 2018. I had vendors in a craft store. IRS wants me to claim 100% of sales from 2018

  • March 12, 2021
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The credit card processor never sent a W2 to me, but did to the IRS. The IRS wants me to amend my 2018 return and claim 100% of those transactions - I did not keep or make 100% of those transactions - that money was put on tax forms for vendors to claim for whose sales they applied to. What is the best way to amend this return without having to claim 100% of money I did not directly make or keep? The IRS wants me to pay them $9000 in taxes and I lost money that year.

1 reply

March 12, 2021

You can report 100% of the sales and then deduct the amount you passed on to the vendors as an expense such as commissions or contract labor.