“What do i do when i dont have p.o.s or reciepts for anything?”---->I guess the wisest thing to do is to contact IRS regional office nearest you in your local area to consult with an appropriate agent ( on your taxation issue). Needless to say, you can never file accurate business return without accurate business receipts, records, or documents. I am NOT sure if this is case for you. However, as long as(IF) you maintain your records electronically or properly in a software program, the data can be exported to various tax preparation programs to assist you at tax time. In certain situations, taking deductions without a receipt is actually sanctioned by the IRS. You still need to file a return if there is nothing to report for the tax period; a "zero" return is required to be filed by the due date, even if there is no tax information to report or tax to be remitted. In general, as a business owner, as long your net business earnings is $400 or over $400, you need to file Sch C and as long as the amount on 1040 Sch SE line 4 is also $400 or exceeds $400, you need to pay your self-employment tax, 13.3% of your self employment income, for 2011. If you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.However, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year: you were a U.S. citizen or resident for the whole year: your prior tax year covered a 12 month period. As a small business owner, chances are good that you will have to make estimated tax payments. If you are required to make estimated tax payments, then to avoid underpayment penalty, you must add up to the lower of these two amounts: (1) 90 percent of the tax you owe for the current year, or (2) 100 percent of the tax you owed for last year. If your 2010 adjusted gross income was more than $150,000 (more than $75,000 if married filing separately,) substitute 110 percent for 100 percent in the preceding sentence. |