8 ms·

[deleting this comment]

coolestguy 4y ago
Your country doesn't allow you to file taxes on a "cash collected" basis rather than an "invoiced but not collected" basis?
- logicallee 4y ago
  [deleting my comment as it is not relevant.]
  - cperciva 4y ago
    I don't know about the USA, but in some countries you can claim a "reserve" for accrued but unpaid amounts in some circumstances. Worth talking to an accountant to see if that's a thing in your case. (Note, there's also "reserve for doubtful accounts", which is if you're not sure if you're going to end up getting paid. It sounds like that one wouldn't apply; I mention it just to be clear that I'm not talking about that sort of reserve.)
  - JumpCrisscross 4y ago
    There is no situation in America where you need to pay tax on a general invoice within two weeks of receiving payment.
    - gamblor956 4y ago
      That's not true. Self employed individuals may need to make an quarterly estimated tax payment if the payee does not withhold on the payment. A payment recieved at the end of a quarter would be included in the ETP due 2 weeks later.
adanto6840 4y ago
What you need is a bookkeeper and/or a CPA, and probably some business/tax advice from a professional (ie attorney, CPA, etc) - probably not a loan.
- logicallee 4y ago
  [deleting my comment as not relevant]
  - adanto6840 4y ago
    This is exactly why you need a tax professional. You're linking to an article that is related to whether or not you can "write off" bad/uncollectible debt; it's not relevant. The first sentence most likely "disqualifies" you from the article's contents entirely -- you're probably not a small business that is using accrual-basis accounting, it sounds like you may not even have an entity at all (which is fine). You need a tax professional (or even a semi-pro); in the interim, I'd suggest solely relying on what you read on the IRS website. Generally speaking, by default you are likely cash-basis -- but yeah, this income & especially with "high variance", get with a professional. If nothing else, figure out whether you actually need a loan or not before applying/asking for one... IANAL/IANA-tax-pro -- but you almost surely do not need a loan.
borissk 4y ago
Don't know about US, but in many other countries there are online marketplaces where you can sell an invoice and get cash fast.
- cperciva 4y ago
  aka "Factoring".
  - deleted 4y ago
    [deleted]
- deleted 4y ago
  [deleted]
gamblor956 4y ago
Why are you paying taxes on a 1.5m invoice? Generally in the US individuals are taxed on income when actually received.
- speakfreely 4y ago
  You are able to choose this when your company first starts filing a tax return. You can report on an accrual or cash basis.
  - fauxpause_ 4y ago
    Both of which allow you to net out expenses and only be taxed on profit
    - deleted 4y ago
      [deleted]
  - gamblor956 4y ago
    I think that if the OP were an accrual basis taxpayer they would already know how to handle this situation, since accrual-basis accounting is opt-in for individuals and S-corporations. Note to other reply: estimated tax payments are made during the year. While you can net out expenses, if income is distributed unequally during the year this can result in penalties/interest if you underpay in one quarter based on the liability as calculated after the year ends (to complicate things, there are multiple ways to estimate tax payments during the year to account for these situations).
jmacd 4y ago
What on earth are you doing that has you invoicing a single 1.5m invoice?
- GaryNumanVevo 4y ago
  Probably tax fraud as they deleted all their comments...

Your country doesn't allow you to file taxes on a "cash collected" basis rather than an "invoiced but not collected" basis?

logicallee 4y ago
[deleting my comment as it is not relevant.]
- cperciva 4y ago
  I don't know about the USA, but in some countries you can claim a "reserve" for accrued but unpaid amounts in some circumstances. Worth talking to an accountant to see if that's a thing in your case. (Note, there's also "reserve for doubtful accounts", which is if you're not sure if you're going to end up getting paid. It sounds like that one wouldn't apply; I mention it just to be clear that I'm not talking about that sort of reserve.)
- JumpCrisscross 4y ago
  There is no situation in America where you need to pay tax on a general invoice within two weeks of receiving payment.
  - gamblor956 4y ago
    That's not true. Self employed individuals may need to make an quarterly estimated tax payment if the payee does not withhold on the payment. A payment recieved at the end of a quarter would be included in the ETP due 2 weeks later.

adanto6840 4y ago

What you need is a bookkeeper and/or a CPA, and probably some business/tax advice from a professional (ie attorney, CPA, etc) - probably not a loan.

logicallee 4y ago
[deleting my comment as not relevant]
- adanto6840 4y ago
  This is exactly why you need a tax professional. You're linking to an article that is related to whether or not you can "write off" bad/uncollectible debt; it's not relevant. The first sentence most likely "disqualifies" you from the article's contents entirely -- you're probably not a small business that is using accrual-basis accounting, it sounds like you may not even have an entity at all (which is fine). You need a tax professional (or even a semi-pro); in the interim, I'd suggest solely relying on what you read on the IRS website. Generally speaking, by default you are likely cash-basis -- but yeah, this income & especially with "high variance", get with a professional. If nothing else, figure out whether you actually need a loan or not before applying/asking for one... IANAL/IANA-tax-pro -- but you almost surely do not need a loan.

borissk 4y ago

Don't know about US, but in many other countries there are online marketplaces where you can sell an invoice and get cash fast.

cperciva 4y ago
aka "Factoring".
- deleted 4y ago
  [deleted]
deleted 4y ago
[deleted]

gamblor956 4y ago

Why are you paying taxes on a 1.5m invoice? Generally in the US individuals are taxed on income when actually received.

speakfreely 4y ago
You are able to choose this when your company first starts filing a tax return. You can report on an accrual or cash basis.
- fauxpause_ 4y ago
  Both of which allow you to net out expenses and only be taxed on profit
  - deleted 4y ago
    [deleted]
- gamblor956 4y ago
  I think that if the OP were an accrual basis taxpayer they would already know how to handle this situation, since accrual-basis accounting is opt-in for individuals and S-corporations. Note to other reply: estimated tax payments are made during the year. While you can net out expenses, if income is distributed unequally during the year this can result in penalties/interest if you underpay in one quarter based on the liability as calculated after the year ends (to complicate things, there are multiple ways to estimate tax payments during the year to account for these situations).

jmacd 4y ago

What on earth are you doing that has you invoicing a single 1.5m invoice?

GaryNumanVevo 4y ago
Probably tax fraud as they deleted all their comments...