Cryptopay and taxes

[SSadmiral]

I’m curious do we as wash owners pay federal income tax on gross revenue through cryptopay or net after all the fees in my case 5% equaling 15,000. Ive been getting these year end summaries from worldpay for years but never actually looked at the fine print. Anybody do the math

 

[Kevin James]

You’ve got to be kidding me!! Who does your taxes? I suggest you go an accountant and have your taxes prepared by a professional. You pay on the gross and the fees are deducted as an expense. You’ve probably been paying too much in taxes for years.

 

[SSadmiral]

It’s all fuzzy math to me I don’t trust any of them but yes I’ve got a good cpa running the show. Thanks for the heads up

 

[Earl Weiss]

You’ve got to be kidding me!! Who does your taxes? I suggest you go an accountant and have your taxes prepared by a professional. You pay on the gross and the fees are deducted as an expense. You’ve probably been paying too much in taxes for years.

Not sure if you ,messed up when you typed. You pay on net, not gross. Revenue is gross or total receipts. All charges are expenses. Gross revenue less expenses = net revenue.

 

[SSadmiral]

So Earl we pay some fees or at least a percentage of them every day it batches out - just kind of skims off the top. Then again at month end when they auto debit. So how would my accountant ever know what my true net is without having access to my true gross.

I only give her my bank statements which don’t ever indicate the true gross

 

[OurTown]

So Earl we pay some fees or at least a percentage of them every day it batches out - just kind of skims off the top. Then again at month end when they auto debit. So how would my accountant ever know what my true net is without having access to my true gross.

I only give her my bank statements which don’t ever indicate the true gross

Our bank statement shows gross sales as deposits from Worldpay. Then the fees come back out shown as withdrawals.

 

[SSadmiral]

Mine do as well but I have fees done at month end and daily I’m assuming I’m not the only one..... the initial fees taken out after each batch daily never show up as withdrawals as they are done prior to deposits daily.

For any of you who have site analytics look at any given day then cross reference with your online bank statement. I realize there is a day or two delay in bank deposits so take that into account. I’m showing 5.8% fee prior to deposit into my bank in addition to month end withdrawal for “ fees”.

So my question is how does my accountant reconcile this? Since as far as she is concerned they don’t even exist!

I’m fine with everybody getting a cut I guess but don’t feel as though I should pay tax on revenue I’m not getting.

Maybe I’m missing something here or something just isn’t right

 

[bert79]

This is the first month where we have had to deal with worldpay doing it a different way. Up until Feb 1st they were depositing the gross cc sales and debiting the account for the fees. The monthly fees were taken out as debits as well. Now, worldpay has changed to a system where they only deposit the net amount into our account. They simply withhold the fees. Those are technically fees that we are paying and the accountant will need to know this as these are expenses. I plan on bringing her the monthly statements from worldpay so that she can account for the fees withheld. It would be much easier for us and our account if they had stayed with the old way.

 

[SSadmiral]

Thank you! I found all the info I was looking right there in my statements.

 

[Earl Weiss]

Thank you! I found all the info I was looking right there in my statements.

You need to give the accountant the statements as well then. You don't want there to be a disconnect between the 1099 they issue you and what you report.

 

[OurTown]

I just looked again and Worldpay is depositing gross and then withdrawing the fees every day. Maybe they have not put us on the new system yet? Can anyone else verify this one way or the other?

 

[bert79]

I was notified by worldpay that i needed to switch to the “accessmyiq” website in order
to access my account. I was notified of this about 2 months ago. Recently i talked to Cryptopay who advised that they are slowly getting everyone switched over to the new system.
I was told that it could take months. Also when I switched is when they started depositing the net amount and withholding the fees.

 

[dukeofsuds]

Maybe I'm missing something but why does it matter?

If you use gross, make sure you put in expenses.
If you use net, don't worry about the daily expenses.

Either way you get to the same number, and the same tax bill.

 

[SSadmiral]

Maybe I'm missing something but why does it matter?

If you use gross, make sure you put in expenses.
If you use net, don't worry about the daily expenses.

Either way you get to the same number, and the same tax bill.

If world pay is sending the irs a 1099 of let’s say gross revenue of $250,000 and I’m only recovering $225,000 net and paying tax on 250 then to me that’s a problem. This all started when I got my year end from cpa and noticed merchant fees of 1% of my gross according to my bank statements. After digging further I noticed the daily withdrawals and things didn’t add up. I’m more like 5.8% which is great all things considered but I still need to reconcile this. My accountant is all over this but I’m afraid even she doesn’t fully understand exactly how this works.

Reminds me of the movie office space if anybody’s ever seen that. All due respect to cryptopay and worldpay for providing this service but it’s very confusing even to my highly qualified cpa.

 

[SSadmiral]

Yes that where I’m going with this! My 1099 is much higher than what im actually getting in laymen’s terms, so I’m paying tax on gross as submitted by worldpay to irs 1099 but I’m only getting net after all the fees; since my cpa never sees the daily fees. I never sent her the worldpay statements these are unaccounted for leaving a large gap

So I’m paying tax on revenue/ fees that never even hit my books.

I sincerely hope this is unintentional on their part or maybe my cpa and I are both culpable in this

 

[Earl Weiss]

Yes that where I’m going with this! My 1099 is much higher than what im actually getting in laymen’s terms, so I’m paying tax on gross as submitted by worldpay to irs 1099 but I’m only getting net after all the fees; since my cpa never sees the daily fees. I never sent her the worldpay statements these are unaccounted for leaving a large gap

I sincerely hope this is unintentional on their part or maybe my cpa and I are both culpable in this

I don't have World pay so if in fact they report gross but only provide net the information you need for deductions should ppear on the monthly statement.
You enter that "Expense" . Then you net out the same.

 

[SSadmiral]

I don't have World pay so if in fact they report gross but only provide net the information you need for deductions should ppear on the monthly statement.
You enter that "Expense" . Then you net out the same.

Yes Your right thanks for being my sounding board! Forwarding worldpay statements to her Would solve this problem, now I need to go back and amend previous years ....