dannyp Posted March 17, 2009 Report Share Posted March 17, 2009 I got and appt Mon for the IRS Field agent to stop by to approve me for a 637#.. I know a few of you have been through the process,,, What should I be watchful for....What do they want to see paperwork wise???? Quote Link to comment Share on other sites More sharing options...
nova Posted March 17, 2009 Report Share Posted March 17, 2009 Don't let them get their hands in your pockets; lol. www.novalures.com Quote Link to comment Share on other sites More sharing options...
Vodkaman Posted March 18, 2009 Report Share Posted March 18, 2009 I would have every relevant receipt for purchases that I have made. Tools, safety gear, clothing, ventilation gear, broom handles etc. Materials, wood, paint sealer, acetone etc. A record of all the sales that you have made. Make sure the top list is bigger than the bottom list, lol. Dave Quote Link to comment Share on other sites More sharing options...
JSC Posted March 18, 2009 Report Share Posted March 18, 2009 (edited) If it is the regular IRS - Excise Tax person ... all I have ever had to show them were my sales and 720s that I have from the time I have been filing 720s .. they will check the part that they are interested in ... but have them all ... also if you have paid excise tax on any supplies you will need proof of that ,,,,, Now if it is for income tax now that is a whole different thing ... Let us know when they finish up. I think you will find that it will be a snap .. JSC After rereading I see that they are coming to see if you are eligible ... my error ... never got checked that way ... Edited March 18, 2009 by JSC did not read the original correctly Quote Link to comment Share on other sites More sharing options...
reeves Posted March 18, 2009 Report Share Posted March 18, 2009 danny, Don't be nervous, it is more of a friendly visit as you enter into this phase of paying taxes. They want to make sure you understand the parameters set that regulate your end of the business. Have all your records handy for their review as mentioned in the previous posts, but most of all, I would ask HIM more questions than he will ask YOU. Once it is over, post a detailed account of the visit as this subject has been of great interest to most and confusing to even more. Good Luck! Quote Link to comment Share on other sites More sharing options...
BLT Posted March 19, 2009 Report Share Posted March 19, 2009 After 2 years of having a number, I have yet had them come to my house. From what they did to my Dad, they walked in and saw his work area, and that was it. They just want to make sure he was legit.After that, they asked if there were any questions, and that was it. Don't sweat it, it's not an audit. Quote Link to comment Share on other sites More sharing options...
Bountiful Waters Posted March 19, 2009 Report Share Posted March 19, 2009 It is a friendly visit. Be sure to ask questions as this is not an audit. Not everyone needs the 637 and they are just seeing if you qualify. Quote Link to comment Share on other sites More sharing options...
2fishon Posted March 20, 2009 Report Share Posted March 20, 2009 Take all your cash and put it in a deep hole the back yard. The only thing for sure in this world is death and taxes and you can't cheat death. Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted March 23, 2009 Report Share Posted March 23, 2009 I've had form #637 going on 4 years. I originally did everything over the phone and filled out the necessary paperwork.My form #720's are filed promptly every quarter w/o any creative accounting. I 've never been visited by the I.R.S. and don't expect to be:yay: Quote Link to comment Share on other sites More sharing options...
JigKing Posted April 6, 2009 Report Share Posted April 6, 2009 I got a phone call today that the IRS will be coming out to look at my books. I just started selling about 2 weeks ago and have not sold any yet. I work out of a small space in my garge and the kitchen table. Dannyp have you had your appointment yet? The worst part is that I have to take off of work so they can see what little paper work I have. Quote Link to comment Share on other sites More sharing options...
MTfishingrods Posted April 6, 2009 Report Share Posted April 6, 2009 Welcome to the world of having a business. Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted April 6, 2009 Report Share Posted April 6, 2009 I got a phone call today that the IRS will be coming out to look at my books. I just started selling about 2 weeks ago and have not sold any yet. I work out of a small space in my garge and the kitchen table. Dannyp have you had your appointment yet? The worst part is that I have to take off of work so they can see what little paper work I have. Call them and explain your position and see if they can re-schedule for the weekend. Tell them exactly how small you are and wish to conform to all tax laws concerning tackle manufacture/sport fishing equipment.They may decide not to come out-it's worth a shot. The 10% tax on gross sales really hurts every quarter but that's life to run this type of business.You can show a loss for 3 out of 5 years-keep good records and receipts.Believe it or not,the I.R.S, is there to help you. They can get nasty when they catch the guys manufacturing/selling and not paying their taxes. Quote Link to comment Share on other sites More sharing options...
dayooper Posted April 7, 2009 Report Share Posted April 7, 2009 I had my meeting with the IRS guy in January. Great guy!! He was there for almost 3 hours. Of course we talked about fishing for 2 1/2 hours and about the taxes for 1/2 hour. Don't get nervous about it as they are required to come and check things out for ALL new Form 637 applicants. I showed him my book keeping (Excel Spreadsheet), my receipts (very large ziplock bag full), and my manufacturing facility (my recliner, kitchen table and my office in the basement). The big thing that they check is to make sure you are paying the tax on the right items. Make sure to ask about items you are making to see if they are excise taxable. Many of the items we make and sell are not excise taxable. If this is the case make sure you let them know so they make a note of that in their file just in case a new tax guy gets assigned to you. Having $10,000 in sales and only paying $15 to $20 in excise tax could cause a red flag to the new guy and cause an audit. My tax guy was very helpful in explaining all of this. Over all is was a great experience. He told me that I had everything in order and I was all set. Good luck and as many people have said, they are there to hel pyou and answer your questions. They are not there to hand out fines and penalties. Unless you have really screwed up!! BTW, he was a big fisherman himself and ended up buying a bunch of lures from me before he left. Thanks, Benjamin Quote Link to comment Share on other sites More sharing options...
dannyp Posted April 7, 2009 Author Report Share Posted April 7, 2009 I got a phone call today that the IRS will be coming out to look at my books. I just started selling about 2 weeks ago and have not sold any yet. I work out of a small space in my garge and the kitchen table. Dannyp have you had your appointment yet? The worst part is that I have to take off of work so they can see what little paper work I have. Hey Jigking and everyone else,, sorry for the late reply but since the tax man visit all has broke loose,, My boss of 16 yrs called me up and said cant make payroll,,(I worked for him and his wife,, small Law firm) and they both were choked up pretty bad,, so I have been concentrating on other things. So My last salaried paycheck will be the 15th. The tax man visit was ok pretty much a come by and see looked over our paperwork and he seemed like it wont be a problem,, The only grip I got is 1st, if you have a regular job you have to take off work, (which in my case wasnt too bad as I do the majority of my work from my home), 2nd, you have a rep call you to set up the appt, which is about a 4-6 week wait, and then you have the appt, 3rd) the field agent then writes up a report and submits it to his superior, who then submits it to his superior, who then make the final descision and approves or disapproves the number. All the while I am getting orders in and need to purchase supplies:(. Other then that wasnt too bad a visit. Quote Link to comment Share on other sites More sharing options...
Vodkaman Posted April 8, 2009 Report Share Posted April 8, 2009 Did you ask the IRS man about starting trading now, or do you have to wait? Sorry to read about your day job, this could be fate. I wish you the best luck with this potentially life changing project. Dave Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted April 8, 2009 Report Share Posted April 8, 2009 He can start trading any day he wants. Form #637 just saves the manufacturer from paying the excise tax on various components. Don't worry,Uncle Sam won't forget to send you the quarterly #720 forms once your #637 is approved. Quote Link to comment Share on other sites More sharing options...
