Anyone here familiar with US tax laws?

[AvalonX]

I am interested in Internet money making but I am not sure how the tax laws work. When are the banks required to flag the IRS etc. The point of this thread is not to cheat or do anything wrong, it is for education only. Homeland security makes everything complicated here now. It took me a week to open a bank account.

[writer811]

I understand your pain. I live in the United States and our tax laws are insanely complicated. The last time I checked, you have to pay the IRS taxes once you start making $600 dollars or more. However, if you're physically operating in the U.S., you have to pay the state government a tax as well, and also the local area where you reside. Every state and every area is different. Also, the taxes are different for self employed businessmen and employees when it comes to federal taxes. The Government is a bit chaotic right now, so the tax rates and requirements are in a constant state of flux. I would get an accountant, to be honest. It's not worth the hassle of trying to run your business and figure out your taxes at the same time.

[Waynefire]

You have to pay the IRS anytime you make a penny. Odd as it sounds you have to do this. SO you should report all of your income to them if they find out even if it is just a penny they will tear you a new one! However, the 600 dollar rule is for businesses and when they have to send you out a 1099 form. If you are doing this on your own it will probably be filed with a schedule C form, unless you are doing complete business taxes as an LLC or Inc.