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Does a business have to declare all monies received

New Paltz, NY |

Does a business have to declare all monies they receive to the irs

Attorney Answers 4


  1. What kind of business? And what kind of monies? Certainly you should declare all taxable income to the IRS. Perhaps certain exceptions apply (e.g. maybe you do not need to declare a "gift"), but you should discuss this with a qualified tax attorney or tax advisor (which I am not).

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  2. The answer is pretty much always going to be yes. In one way or another, it will need to be claimed. When your business is large enough, you are often required to submit a balance sheet with your tax return which shows money in and money out. A lot of those numbers are required to tie into each other and it's best to keep track of them from the beginning (along with your "basis" in the business, which requires a much longer treatment than possible in this forum). If you are in business, you need to find a tax professional whom you trust and feel you can work with long-term and go see that person.

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mrs. Cook is licensed to practice law throughout the state of California with offices in San Diego County. She is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.


  3. I agree with my colleagues.


  4. All income must be declared. Loan proceeds, and equity contributions are not income. But either way, this is a nebulous question. If you are having questions about what type of income needs to be declared to the IRS, you shouldn't be doing your own taxes anyway. You should have a CPA prepare your taxes and they will hopefully ask the questions that determine what is taxable.

    Christopher Larson
    Insight Law

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