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Subject Author Date
Are large business purchases typically reported to IRS? bjackson445 03-10-2007
Posted by bjackson445 on March 10, 2007, 2:11 am
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 Most of our customers buy small dollar amounts of our
product (typically less than $500 at a time). However, we
have one customer which typically buys $15,000.00 or more of
our product at a time. During the course of a year, they may
purchase $100K or more of our product (which they resell in
retail stores).

My question is, is this customer (the one who buys $100K+
from us) supposed to report these purchases to the IRS?

Thanks for any help.

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Posted by Rich Carreiro on March 11, 2007, 3:50 am
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 bjackson445@yahoo.com writes:

> My question is, is this customer (the one who buys $100K+
> from us) supposed to report these purchases to the IRS?

Why do you care? You have to report the $100K of income
whether or not your customer reports the purchase to the IRS.

--
Rich Carreiro rlcarr@animato.arlington.ma.us

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Mike Wellman on March 11, 2007, 12:23 pm
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bjackson...@yahoo.com wrote:

> Most of our customers buy small dollar amounts of our
> product (typically less than $500 at a time). =A0However, we
> have one customer which typically buys $15,000.00 or more of
> our product at a time. During the course of a year, they may
> purchase $100K or more of our product (which they resell in
> retail stores).
>
> My question is, is this customer (the one who buys $100K+
> from us) supposed to report these purchases to the IRS?

No. But they will claim the purchases as inventory or cost
of goods sold. But the source of the purchases is not
identified.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Seth Breidbart on March 11, 2007, 12:23 pm
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> My question is, is this customer (the one who buys $100K+
> from us) supposed to report these purchases to the IRS?

Generally, no (the IRS would melt if every big transaction
were reported to it); however, if they get audited the IRS
will certainly see how much they paid you.

Why does it matter?

Seth

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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