The IRS is a US-based tax collection agency. Their main purpose is to collect individual income taxes and employment taxes. The cost of those charges basically, depends on your revenue. There are some e-commerce platforms that can report your business to the IRS. That is why in this article, we will explain to you will Shopify report to the IRS and what circumstances could impact it.
Does Shopify report to the IRS?
We took a closer look into different online sellers cases in order to know will Shopify report to the IRS. Our investigation ended, when we found the situations where Shopify uses the IRS reports, so they could compare it to your Shopify revenue. In other words, there are cases when Shopify goes directly to the IRS in order to see whether you are hiding your profit or not. Basically, it prevents them from working against the laws. That is why Shopify sellers might get emails concerning tax records.
Who needs to pay the IRS?
As mentioned before, the IRS is a US-based revenue service. So, you need to pay the IRS only if your business is based in the US. This also means that you are under their government laws. In all other cases, you should not receive any emails from Shopify regarding IRS taxes.
How does the IRS contact taxpayers?
You already know when will Shopify report to the IRS and how you will be informed, so another thing is to understand how the IRS contacts their taxpayers. Basically, they do it in two different ways. One of them is by a phone call, which goes right after emailing you. They do it in order to confirm an appointment or to discuss a certain item or the collection. On the other hand, the IRS could also make unannounced visits to your home or office. Their officers will discuss your payments, tax returns, etc. but they won’t demand any sort of payment.