TKK Posted July 16, 2012 Share Posted July 16, 2012 Hi guys. Help me out here. I know what I should do however my friend says otherwise and he was ex IRS. Since I started full time from vending about 2 months ago I now don't report what I was making at my job. However I'm trying to finish my business degree I need about a year left. I applied for financial aid. I think I qualify now since I'm unemployed. However they said that if I start a business I have to let them know as that can disqualify me. I'm closing our dba or company because the other 2 ppl I started w are out and I was going to put it all in my name. My IRS friend said he'd recommend I don't register it just close it and not report my income etc. I know I could easily show loss this year as I spent a ton well a good amount and I bought a service truck etc. He says w bulk your not required to report but he's not sure about can and snack machines. What should I do lose financial aid and pay my own school or get financial aid and cancel the company? Keep inind my school is about 7k a semester and need about 3 Link to comment Share on other sites More sharing options...
Rick Posted July 16, 2012 Share Posted July 16, 2012 I'm sure your friend knows better than I, but I could never personally follow a line of advice where I did not report my income. I'd be too afraid of getting caught plus it's just wrong. If I were you, I'd report it; especially considering you're fairly certain that you can show a net loss for the year (making it much more unlikely you wouldn't still qualify for financial aid). Good luck whatever you decide! Link to comment Share on other sites More sharing options...
Nate9303 Posted July 16, 2012 Share Posted July 16, 2012 If you're reporting a loss I would think that would improve you financial aid standing. Link to comment Share on other sites More sharing options...
shepherdsflock Posted July 16, 2012 Share Posted July 16, 2012 IRS are thieves and apparently your friend is, too. Not reporting income is fraud. Your friend is loading your luggage for a trip to the slammer. Link to comment Share on other sites More sharing options...
PerformaVending Posted July 16, 2012 Share Posted July 16, 2012 I cannot imagine a way in which NOT reporting your income would lead to anything good. They are right, if you follow your friend's advice, you are standing one audit away from hefty fines at the bare minimum. I would rather take a loan out than face the wrath of a "slighted" federal government. Link to comment Share on other sites More sharing options...
TKK Posted July 16, 2012 Author Share Posted July 16, 2012 Yea I'm going to cancell the business and reopen it after the semester starts Link to comment Share on other sites More sharing options...
PerformaVending Posted July 16, 2012 Share Posted July 16, 2012 Good luck TKK! Link to comment Share on other sites More sharing options...
TKK Posted July 16, 2012 Author Share Posted July 16, 2012 After that I will just do the taxes rightfully I want to actually incase I ever wanna finance a house or something Link to comment Share on other sites More sharing options...
BigRedvender Posted July 16, 2012 Share Posted July 16, 2012 Close the business. Unless you can grow it enough to pay for your school outright and that is tough to do as a start up. After the second semester open your doors and go in both feet kicking. Pay do the smart think keep expenses low and pay your school loan off ASAP. If you have any. IRS and Fed Insured Student loans are two things you can't discharge in a Bankruptcy You can postpone the School loan through Deferment/Hardship deferrals. Not recommended though because interest will still grow. Link to comment Share on other sites More sharing options...
mission vending Posted July 17, 2012 Share Posted July 17, 2012 Hi guys. Help me out here. I know what I should do however my friend says otherwise and he was ex IRS. Since I started full time from vending about 2 months ago I now don't report what I was making at my job. However I'm trying to finish my business degree I need about a year left. I applied for financial aid. I think I qualify now since I'm unemployed. However they said that if I start a business I have to let them know as that can disqualify me. I'm closing our dba or company because the other 2 ppl I started w are out and I was going to put it all in my name. My IRS friend said he'd recommend I don't register it just close it and not report my income etc. I know I could easily show loss this year as I spent a ton well a good amount and I bought a service truck etc. He says w bulk your not required to report but he's not sure about can and snack machines. What should I do lose financial aid and pay my own school or get financial aid and cancel the company? Keep inind my school is about 7k a semester and need about 3 Your IRS friend is a IDIOT AND A FOOL, Of course you are required to report all of your income, does not matter if it comes from snack and soda vending, bulk vending or some sort of other income. This "friend" needs to get into another line of work as he is not knowledgable enough to do his job. If you follow his advice then you are also a IDIOT AND A FOOL and deserve everything that happens to you. I hope my position on this is clear Link to comment Share on other sites More sharing options...
will.vend Posted July 17, 2012 Share Posted July 17, 2012 IDIOT AND A FOOL No comment! Link to comment Share on other sites More sharing options...
TKK Posted July 17, 2012 Author Share Posted July 17, 2012 Yea so I'm gonna close it and restart it doesn't mean I won't be working it. I just won't report til a week or two Link to comment Share on other sites More sharing options...
Rick Posted July 17, 2012 Share Posted July 17, 2012 Something to keep in mind...I read an article somewhere that if you close a business AND open a business within the same calendar year you are about a billion times (maybe an exaggeration, but not much) more likely to be audited. Just cuz it looks shady, like you're trying to avoid something. So I'd make damn sure your affairs are in order. Link to comment Share on other sites More sharing options...
dogcow Posted July 17, 2012 Share Posted July 17, 2012 lying on a fasfa (financial aid) form is a federal crime Link to comment Share on other sites More sharing options...
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