Here is how I track my work:

1) For every shop I perform, I have a worksheet. To it, I staple that shop's receipts. It then goes into a file folder labeled for the month and year of the shop. When the month transitions to the next month, I put that file into my file folder plastic box.
2) I created an Excel spreadsheet that records the pertinent data needing to be reported to the IRS. The spreadsheet has a top row with the particular month of the year in which I performed the shop. It has columns that indicate the week of that month, shop date, shop address, fee, bonus and reimbursement. Plus, for my own interest, I also added the date of the pay received. The fees, bonuses and reimbursements are totaled weekly.
When the month is finished, a paper copy is made and a hard copy is saved to my computer and a remote hard drive.
3) As for my mileage, I record in a daily planner my mileage for the day that I performed the shop(s). When the year ends (12 31), I file that away in all the other stuff for IRS information for the year.

It takes a little more time, but I know that if I ever get audited by the IRS, I have all of my records available. At tax time, I simply go back to these records to view the year's fees, reimbursements and mileage.

BTW, if I found money, I do not report it. Found money goes to two different areas - change to the Salvation Army, cash, into my pocket.

@johnb974 wrote:

If you found $20 on the streer would you report it as incomes?

Technically, I am supposed to. But I wouldn't. I wouldn't even consider it unethical because I'm sure at some point I have lost $20 on the street, and I'd figure it was a wash. But if I earn $20 as part of my business, I would report it, because if at some point if I lost $20 doing business I would be allowed to deduct it. Seems fair.

Being a CPA for 25 years, I have had clients that are worth $250,000 up to $500,000,000. None of them are as moral (or acting that way) as you on this forum ! $20 found, is not income or finding any amount of money. Now, is it the right thing to do, to keep it ? Well that is completely up to you. If it makes you feel good to report the $2 or $8, go right ahead. You are now the best American (at least in your own mind). The IRS is not going to spend any time searching for you. For one main reason...NO PAPER TRAIL. Just as an example, if your son cuts the neighbors grass for cash every week, the homeowner isn't filing any payments. No paper trail. Again, if it makes you feel good, make your son file a schedule c at 13 years old ! Growing up, I made thousands of dollars over the years, cutting grass, pulling weeds, cleaning garages and shoveling snow. ALL CASH. In your minds, I guess I'm not a true American ! All of you have done things like this growing up. Babysitting or getting paid for helping someone move or whatever. Last week, I prepared a couples taxes, net worth, 3.9 million. REFUND of $ 23,450 (originally owed $32,000)
ALL DONE WITH SMOKE AND MIRRORS ON THEIR PART !!! Enjoy tax season


Edited 1 time(s). Last edit at 02/05/2025 07:03PM by Fonz.

I believe CPAs, specifically, are bound by Circular 230 and the state board the license was issued. At the profession's core, it serves in the best interest of the public. Especially sole proprietors or small firms in non-industry roles.

Many reputable CPAs will not knowingly defend a tax position or sign-off on a return without substantive documentation and records. If the CPA also knows of a material omission, that's enough for a CPA or any licensed professional to terminate/fire a client. In other similar lines of work, professionals are selective with who they serve and have low tolerance for certain types of behavior.

Effective tax planning is one thing, but knowingly signing off on a materially inaccurate return is a big no-no. This applies to all licensed professionals, not just CPAs.

@Okie wrote:

I believe CPAs, specifically, are bound by Circular 230 and the state board the license was issued. At the profession's core, it serves in the best interest of the public. Especially sole proprietors or small firms in non-industry roles.

Many reputable CPAs will not knowingly defend a tax position or sign-off on a return without substantive documentation and records. If the CPA also knows of a material omission, that's enough for a CPA or any licensed professional to terminate/fire a client. In other similar lines of work, professionals are selective with who they serve and have low tolerance for certain types of behavior.

Effective tax planning is one thing, but knowingly signing off on a materially inaccurate return is a big no-no. This applies to all licensed professionals, not just CPAs.

Than don't tell them about any cash payments.

@johnb974 wrote:

Than don't tell them about any cash payments.

johnb974, to quote Donald Trump from The Apprentice, "You're fired!"

Sorry, too harsh. Depends on the circumstances, is all I'll say.

Great answer ! 25 years and counting...I do believe we have 125 lawyers on staff.
We are to stand by our clients and work whatever magic they come up with. I lost my conscience after my first year with the company. The billionaires that trust our company would disagree with you !

You mean 125 tax attorneys? Wouldn't a few legal counsel and professional liability insurance be satisfactory enough?

It's a buffet of lawyers ! Whatever is needed for whatever situation. I work for a very large conglomerate corporation. I think...35,000 employees worldwide.

I don't want to get too off-topic. I'll leave it at that!

I just wanted to clarify my comments. My wife read my posts, she wanted me to apologize. I won't be doing that ! I wanted to shed some light on what the normal person doesn't see or know about corporate America. Life can't be seen with "Rose Colored Glasses". It is NEVER what you are told or read about. Wealthy people move the needle in this country. That is a FACT (just look at Mr. Trump and what he has gotten away with !!) Oh by the way...a billionaire. You may disregard what I posted, but it is the truth. Wealthy people get away with things all the time ! People on this forum, seem to attack when it is a different opinion or a truth. I came here because a friend of my wife's does high end shopping and she said she learned a lot here. I do strictly high end dining (I take clients to dinner, why not get something back) I fail to see that. I see certain people immediately have the answers or feel they are the authority on EVERYTHING ! I will not be posting anything else. It feels trite, to do so.

WOW ! I enjoyed your comments and hope you continue to post.

Every member is unique and different. Hopefully, no one always agrees on everything, and there's a healthy discussion/debate.

Opie, oops Okie. Wonder if that was directed at you ?

I'm so confused! And paranoid. I need more coffee.

from what i understand is they can send you anything and you can report anything under $600. you, paypal, and companies are required to report to the IRS and as such send documentation if a single organization sends you $600 or more in a single year for labor. a huge number of these transactions fly under the radar intentionally and otherwise. the same happens to transactions above this level.