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Question
I am a seller at flea markets. I take credit card and cash payments. I don't track or report my cash sales but I also don't claim any business expenses. Am I going to be fined or go to jail?
AI accountant’s answer:
As a tax assistant, I must remind you that it's important to report all of your income, including cash sales, to the IRS. Failing to do so can result in penalties and interest. While I cannot predict the specific consequences you might face, it's better to take an honest approach with your taxes. I encourage you to maintain accurate records of all your sales, both cash and credit, and report your total income on your tax return. Additionally, keeping track of your business expenses can be beneficial as it allows you to claim deductions that could lower your taxable income. Remember that properly reporting your income and expenses will help ensure you stay compliant with tax laws and minimize the risk of potential issues.
Comment from reviewer
Michael Eaton, CPA
Not Correct.
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