Ask TaxMama.Com Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 271        August 13, 2004

TaxMama's Resources & Specials Check 21 - Another Gift From Your Legislators Sweet 16 - & In Business Overpaid Employee Sky Pilot   IRS Examining - - Credit Counseling Firms - Compensation Levels   of Exempt Organization   Executives   Chain Reaction   E-Mail  This Page To A Friend Your email: Your name: TO email:

Sweet 16 - and In Business » From: Hurst, TX Dear TaxMama: I'm 16 years old and starting a small independent company online that sells hand-made purses. It doesn't even have a "dot-com" adress." Am I liable if I don't pay taxes? Are there laws that obligate me to pay taxes? Thank You For Your Time Katie Hi Katie, Uh yes, you must filed tax returns. Your age doesn't matter. If you run a business, and you collect money from people, sooner or later you will come to the notice of the various tax authorities. In your case, sales tax and IRS. As to laws, well, let me see ... the entire tax code? Seriously, Katie. if you run a little, tiny business and you sell a couple of purses to your friends in a year, I wouldn't sweat it. But if you do this for real - and sell several purses each month, start looking at running a real business. Many people started businesses in their teens, arising from a hobby, that made them very wealthy. Some, even get famous. So,don't discount yourself because of your age. And, especially because of your age, you don't want to start getting into tax trouble this early. I will ruin your life. Believe me on that - I've seen young people age really quickly because some stupid tax or credit thing they did in their teens or early 20s messed them up for the next several decades. Totally unnecessary. Do it right. Ask your parents to set up an appointment with their tax professional and get some personal guidance. And you are always welcome to come back here. I'll try to direct you. In fact, you can listen to a free teleconference about tax tips and organization tools for small and Internet businesses. Best wishes, Eva Rosenberg Your TaxMama

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