The IRS SUED ME FOR $34,000 FOR SELLING SNEAKERS (How I Dealt With It & How to Avoid It)

In today's video we're discussing the time the #IRS hit me with a big bill simply for selling #sneakers . Something as seemingly innocent as making a few extra dollars can turn into a MAJOR issue if you aren't careful. We're using the new #airjordan 1 Satin Snakeskins as an example to illustrate. Share your thoughts down below!
LIKE THIS VIDEO & SUBSCRIBE!!! THANKS FOR WATCHING!!
Twitter/Instagram - @LyricalPhetish
Business Inquiries: [e-mail]

[@rexenfx]

I didn't know Tyler Perry was a reseller. This man is skilled af

[@budgetsneakerhead3291]

Got to do something with that Madea money

[@keahv7900]

LMFFAAAOOOOO

[@blankman3722]

😂😂😂

[@shotbyhoodie4683]

I was thinking Tim Duncan and Russ Westbrook combination l😂

[@marvin7533]

🤣🤣🤣🤣

[@latisharucker6492]

Re-Sellers really NEED to watch this, because I'm sure a LOT of re-sellers are ONLY focused on making money and by far not focused on the professional and paperwork aspect of it all. I'm sure a LOT of botters are not aware of this either, so you are providing major important information for re-sellers but if they don't take your information into consideration they can't say they didn't know. This was really nice of you to help re-sellers so what happened to you won't happen to them.

[@SneakerPhetish]

I appreciate you saying that! And the wild part is, reselling & botting has SO many deductions people don’t take advantage of! I just want people to be empowered & equipped with the information they may not hear from others out here. Treat it more like a business & less like a hustle. I appreciate you checking it out 🙏🏽

[@latisharucker6492]

@@SneakerPhetish No problem I enjoy watching your content

[@Bkte]

I’m 16 and re selling should I be worried about this or nah ?

[@tommymomny3895]

@@Bkte Nah

[@jefferychacon6984]

QQTE only become worried when u start making 5k+ a year of of selling sneakers

[@Minecraft9999999x]

Uncle Sam upset he ain’t got no drip

[@prosperandgamble]

Uncle Sam is the most successful pimp in America. We’re his hos and he gets his pay no matter what.

[@Fume1337]

Prosper & Gamble P&G you mean scammer

[@kustoo]

Thanks for sharing. This is good information for people to know. Especially if they want to make sneaker reselling a "business". Make sure you do your research folks.

[@SneakerPhetish]

Absolutely. Hopefully people can use me as an example of what (not) to do out here! Really appreciate you stopping through & checking it out!! 🙏🏽🙏🏽

[@Koo_laide]

Does this apply when sending to friend/family transactions? Because I use paypal to send/retrieve when cash isn't handy.

[@saucebands4460]

Fuck the IRS. Take me to jail.

[@ToolDeals]

@Tony Pajamas You still owe taxes.

[@youngfinance6319]

@@ToolDeals bs I'm 15 and I have 28k in cash. No need to pay the irs if they have no clue how much u make or how much u got

[@jbonano]

Each one, teach one!! Way to go bro, this is gold!!

[@eurk]

If that's ya girl she pretty tell her I said hi lmao

[@1winged136]

@@eurk why? she doesn't acknowledge Bumass broke dudes like you anyway?

[@txctikal264]

@@1winged136 dam

[@eurk]

@@1winged136 I'll buy you life pussy you prolly your father's lil brother next time raise yo hand when you want to talk to me goofy I was just being funny niggas like u play hide and seek in ya backyard by ya self pussy

[@Ape_PONR]

EURK you sound thirsty and corny. Be quiet.

[@handmightyhand4674]

This why school system in america sucks they don't actually teach you how to be able to survive after high school. Bruh, I wish government class in senior year was how to do your taxes and how taxes work and how to deal with taxes. Being a minority myself I feel I wished I knew about taxes before I got out to the real world.

[@joeyicepick858]

Facts....I thought the same thing before...

[@Truemoo4]

From my experience a bunch of losers that never payed attention in school always say this kinda stuff. Although we live in different areas I hear people that went to my school say that all the time and it’s cap

[@bottomherout2357]

They cant teach you things to survive or else the reach wouldn't be so rich imagine if everyone knew how to do life yeah we the people would be too powerful

[@bottomherout2357]

@@Truemoo4 from my experience idiots like you are the ones who think school actually teaches you anything other than being a sheep in a herd that you call the real world haha

[@keanurodriguez9232]

Funny thing is dude, the information to learn is out there. High School isnt where they teach you about all things life, but how to learn and use your resources to teach yourself. Use your resources bud, there plenty of info out in the interwebs.

[@alphapapa4446]

Not today, IRS! Ozark has taught me too much about cash flow 😂

[@EternalNightingale]

Damn I’m just selling a few shoes here and there I thought there wasn’t much else to it😭

[@boss12356]

Just dont use PayPall lol

[@EternalNightingale]

jestem raperm zjadam cie jedna zwrotkja it actually doesn’t matter it depends how much to income you make from selling obviously people make thousands just selling clothes shoes etc on a regular basis

[@yohannesd4992]

@No Regrets yo teach me how to sell phones

[@ToxicFruitSnack]

Yohannes D fax i wanna get in on this

[@ToxicFruitSnack]

No Regrets oh really? noice

[@mesadrums375]

When Joker in Batman the animated series said the only people he never messed with was the IRS, he wasn’t kidding

[@riffraff1342]

PayPal is the FEDS , I hate PayPal , they’re holding my money for 3 months now smh. Screw them.

[@nintruendo6411]

DOLLARS ARE THE FEDS. If you make it, they take it.

[@dndjxnskdbajd4561]

Fr, PayPal's a bitch. I sold products on eBay for two years and EVERY time money came in from a purchase I'd have to wait a month for it to be released. Gave up when someone scammed me out of a £400 3d printer. Will never use them again

[@BigMundo22]

@@dndjxnskdbajd4561 my whole Ebay account got restricted after I had to refund $6k. Now I owe Ebay $1700 in fees and they locked my PayPal account for that. They both suck

[@prosperandgamble]

Fuck all alphabet boys.

[@jzthecreator2270]

@@BigMundo22 Call Ebay support and explain the situation, similar thing happened to me

[@K_Diggy]

I saw the title and knew exactly what happened, I went through the same thing with car parts. Now I have a LLC and Business Lines of Credit. Also if you make at least $250 a quarter you must file taxes. When doing this the right way it makes your company legit and more companies are willing to do business with you.

[@MalikJS18]

Moral of the story America doesn’t care what you have, they want it all 😂

[@ToxicFruitSnack]

What a country, smh.. only cares about money

[@jwiggs86]

I work as a tax accountant and business advisor and have always wanted to make sure sneaker youtubers and resellers make sure they have proper documentation. I would love to link up with some people and drop some gems

[@jwiggs86]

@Nicks Kicks I'm physically located in Georgia, however I work with clients all over the world

[@jwiggs86]

@Nicks Kicks my snap is jwiggins3048 and my ig is jwiggins1186. Whenever you're ready hit me on either and we'll get going.

[@youngfinance6319]

@@jwiggs86 Hey I have over 28k in cash. Is that ok or do I still have to pay taxes. Im 15 and I dont know how taxes work or none of that stuff

[@dondaleyy5829]

@J Wiggs. Follow me on Instagram, let’s talk in the dm (@dalesmoove)

[@mygamepowerdotcom]

Man I cannot get a grant or a simple loan from the government for my small business without pulling teeth but they quick to hassle me for that $100 in interest I never received.

[@alejandropreciado1814]

Cause it's "fuck you, pay me", we are their tax cattle, we live to pay into the system.

[@blaxsmith]

Buckets would give that shirt a 5... 😅

[@armstrongisunuoya9719]

Lol my g really uncivilized

[@shadowblackfiveo]

😂

[@digitalmusicalart3494]

@9:50 you have to make sure your company is a S Corp, under your LLC. Then no one will be able to sue you personally.

[@hx1234]

already knew this. Stocks will send you a tax form too when you sell over $10,000 or $20,000

[@InitiallyJB]

Oh wow really I had no idea. I got scared of it tbh. Gotta finish watching this video

[@ArmandoGore]

Doesn’t matter if you don’t get a tax form you still got to report any additional income.

[@ArmandoGore]

Bare Knuckle you’re right not any but for me, it would be anything over $600

[@Sorii]

Armando Hernandez nah there’s no legal obligation to report it

[@ArmandoGore]

@@Sorii if the irs finds out goodluck with the penalty.

[@bigdmilz05]

Man damn that’s a lot of money they tried you for. Mad jewels were dropped for this one. Thank you for the lesson. Keep it up!

[@itiswatittis]

Good information. A lot of people won’t even give you Ingredients to the recipe

[@beastmode63]

Fatcs 👉🏿💯

[@blit7079]

Facts

[@blit7079]

Cause they’re greedy

[@omogoloontefetse]

Im currently studying Chartered Accounting and I must say I really loved how fluently you explained most of the terms. 😂😂❤

[@rejectmac]

This video came at just the right time because I’ve been thinking about getting into the sneaker selling business. Thank you for sharing your personal experience and tips on how to properly navigate the system.

[@DannyMoore2369]

🤯wow!! this is crazy!!! thank goodness it worked out for you bro, this is scary! but love the tips!!! great video, listen up people!! taxes are no joke!!

[@ClintAshlock]

Man, I love your videos. You seem super genuine and deliver some very engaging content I don’t see anywhere.

[@SneakerPhetish]

Thank you so much! I’m just a regular guy that likes to talk kicks! Really appreciate you getting so much from the information! 🙏🏽

[@icthusyoo2981]

I'm about to be getting my masters in accounting and also am a sneaker Re-Seller. Nothing big.. yet. But I appreciate you sharing this. People forget that side hustles must be treated as a business, especially if you want to scale it. This video was solid, and it is the reason I'm subbing to you. Keep up the grind bruh.

[@blit7079]

It’s like this ,just keep it LEGAL I gotta file every year since I own businesses and I gotta keep all receipts and take notes 📝 on mileage gas keep track of all our utilities bills cell phone bills equipment office equipment every single thing ,and also licenses insurance etc etc ,he’s exactly right Best to do is right away get a license LLC and keep track of all expenses and overhead etc etc Blessings to all I don’t sell shoes but I work for myself and wouldn’t have it any other way 💯

[@qorinthhh]

Do 15 year olds have to get llc

[@qorinthhh]

Because I don’t pay bills pay for food gas or nun like that I use my momma PayPal to do my sneaker business

[@blit7079]

WhxsperSZN I cant answer that sorry depends on state and laws just ask it never hurts to seek counsel

[@blit7079]

WhxsperSZN it would be on her I’m guessing but ask your parents to be sure

[@youngfinance6319]

@@blit7079 I have 28k in cash. Do I have to pay taxes on that?

[@CookieCutter]

*glad someone shows this stuff!*

[@ZiGy14]

I ain’t even a reseller but wow this was amazing info, thanks for sharing!

[@FaithandNova]

Very important to know you might one day get into the business

[@SZJA]

This works with everything and is applied to every business or business transaction you make in life.

[@branphloe-mixes]

Really informative, this is something to keep in mind at all times in order to avoid trouble.

[@DawaSupplyCo]

At approx 6:30 I recognize and appreciate your Accountability and ownership. (Me me me, i i i, “i missed up”, its MY fault” A good man/person/business-person requires these traits.

[@justSTUMBLEDupon]

The best thing you can do is file for a LLC or a S Corp, and keep a separate account for it. Even if you don’t create a LLC, at the very least have a separate bank account.

[@crileymane]

Depends on state you live in , I live in MA anything over 600$ you get a 1099

[@ChrisDavis-km4jl]

😭 U Literally Had A Business & Didn't Know It

[@zach3860]

Thanks bro I’m only 16 but I’ve been investing most my money into sneaker holds and I want to keep going when I’m 18 so this is good info

[@EnriqueBRZ]

i’m a little clueless here, what is a “sneaker hold”? 😅

[@user-me7pn6kl2z]

Enrique’s Right Nut like in stocks, whenever something isn’t worthy of buying or selling you hold your position. Basically holding a sneaker is akin to waiting until the right moment to sell it for a higher price (if it happens, it’s not guaranteed)

[@sodasneaks]

Love this video! Was looking for these answers when I started taking reselling serious. Answered all my questions. Thank you!

[@juanantonio5319]

Awesome video man, this is one of the best sneaker channels on the site. Good advice, early reviews, and you review shoes that don't get the airplay anywhere else. Glad I subscribed!

[@dtpolaris8265]

Every sneaker reseller should watch this video.

[@ado4224]

Good info. All the resellers say like I just post it on insta and then sell the shoe. Nobody tells stuff about taxes, legit business etc.

[@Phystion]

There’s a lot more specifics to it that people really aren’t taught. It’s crazy, but knowing how taxes work and how to reduce how much you pay can really make a big difference if it is your primary source of income. My main advice is that because these are tangible goods, transactions can all be done in person or via fnf transfers. This is really good because you will pay nothing in taxes and may even get some reimbursement. Additionally, your recorded income will be much lower than it actually is, so the IRS may even give you money for filing your taxes (stimulus check, financial aid etc). Some ppl may say it’s illegal or immoral, but I say it’s called outsmarting the system. Wealthy entrepreneurs do this all the time hence the phrase the rich get richer.

[@platanodash]

Just went over 20k and got a notification from irs and StockX. Glad I found this video

[@davidmargolis95]

I have 30-50k in revenue monthly and I’m scared of tax season. Thanks for this video!

[@terrantino]

WHAT DO YOU DO?

[@oxidins529]

I made $700,000 in August from shopify and I don't even know how to file taxes I'm only 19 😂😂😂

[@moneymakingmitch]

@@oxidins529 What in hell are you selling

[@jefferychacon6984]

Oxidins AMV what teach me the way 😂

[@AhmadCustomz]

Don’t be stingy spread the knowledges and love man or stir me in the right direction give back for what you got

[@WadeHunter]

Bruh imagine procrastinating the IRS....

[@mr.devindavis4353]

That ain’t good 😂 they gon take everything

[@jahara3176]

Super informative! Glad I stumbled across this. Thanks!

[@justducky8508]

Thank you brother 👍🏾 quick , genuine & transparent ✊🏾 god bless

[@SneakerPhetish]

Likewise my brother! I appreciate you watching!

[@rickyy.414]

You know you’re a big fish when you get a letter to the IRS👌🏽

[@asapgetwitit]

Bro on god you took like Tyler Perry and I can’t be the first to tell you it. Lmao 😂

[@lvosx1]

man great gems in this vid, never even thought about PayPal credit! Thanks again!!

[@thongkhouang]

Glad you put this out, this is good info not many people focus on what goes on behind the scenes of a business. If you do any significant volume, you need to learn basic accounting. Track in Excel, Quickbooks, or something if you intend to make your sneaker hustle a legitimate business. Personally I use Quickbooks for my reselling; tracks my inventory, purchases, sales, expenses, and all profit margins. Technically, you're suppose to pay taxes on any income you generate (regardless of platform) but I wouldn't worry about few pairs here and there.

[@ryanbaird3912]

i am honestly so confused i’m doomed bruh

[@patc3508]

Great video and advice! Love it... I never thought of LLC before and now I should.

[@Oying76]

Very good advise bro!!! Thanks for heads up! Great video!!! 🔥🔥🔥

[@miasitova4941]

Best channel ever! Your videos are extremely informative and the info you’re telling is organized and easy to follow!!! HUGE THANKS!!!!!!!!!!!!

[@DatBoiSaint]

Oh snap I never knew I was a reseller. This is my life now I guess I only bought one pair of air forces on StockX & now I'm here.

[@jordanjereme4501]

the side of the sneaker game they dont show

[@nadiraziz97]

Wow! I know I’m late seeing this. But very informative bro!!

[@marvin7533]

It's common sense if you're selling stuff like a business of course they will get you! Cash only!

[@mr.beasyatl826]

Damn bro great information definitely taking notes 👍

[@HMartindeCampo]

Brilliant open honest & most importantly INFORMATIVE‼️ New subscriber here!!

[@SneakerPhetish]

Thank you for subbing!

[@angelcoleman7780]

I'm happy i ran into this video ... you kept it 100 and now i know what steps to take as a future reseller ... you cannot run from IRS smh lol

[@wapooshe5112]

Absolutely amazing video. Thanks for taking the time to make this

[@RealJahson876_Official]

GREAT video man everything I needed to hear!

[@muhainine6606]

What if I made only about $2000 within 2 years? Reselling sneakers to me is only getting lucky on the release date and let the shoe go up in price over time. I don't really buy sneakers for resale to resell it again. This is just a small side hustle for me. Anyways great vid man!

[@EternalNightingale]

Same bro but you should be good since it’s not serious income like others buying and selling shoes every week

[@leqendslab1124]

Thanks bro I love tracking my payments it’s so safe in the long run

[@R9TR0]

Thank you very much for the insight on your experience, dropping gems of knowledge

[@inthegym2479]

Good information bro, one of the realest doing it.

[@Aguelito79]

Great video, this information is the one that OGs don't share with the rookies. Thank you 🙏

[@FaithandNova]

That's for the info. I write down all important info for my future venture

[@warrend.brownsr.5757]

I really appreciate the knowledge. Thank you

[@JoshuaYeshuaCSULB]

Good video/info , I will sub look forward to your content in the future

[@CarLanguage]

Thanks for the info. On another note Tyler Perry in the face.🤣😂

[@Thugnificent501]

Again great video as a novice sneaker seller great information about how to go along and do business. Thanks

[@traczebabe]

Really great information! Thank you so much.

[@michaelsynod271]

This may be the best video I ever watched thank a lot I had no idea about paypal

[@drec00k206]

Great game thanks for the information bro!!

[@sportswarhol0077]

Thought this was Tyler Perry🥴🤣🤣... great video tho bro

[@h00nigan43]

Great knowledge you dropped!!!

[@johnfigueiredo9154]

Thanks king this was valuable information to learn indirectly and I'm grateful you're sharing so I don't have to learn this the hard way! Shocked I was never aware of paypal working capital either

[@Blanchardtyler1]

Thank you bro this video was perfect

[@christopherort2889]

They didn't sue you for selling sneakers. They sent you a bill for failure to report income from selling sneakers.

[@g.austins5508]

That’s why I always get cash and in person lol

[@g.austins5508]

Anthony Rivera exactly bro try buying something on stock x or goat minimum wait 2-3 weeks I sell my shoes on fb market place offer up, la kicks etc I’ll rather drive 30mins for some cash then wait for pay pal to pay me or risk losing the shoes on trans . I’ve made couple thousand on hand to hand sales . That’s just my side hustle too.

[@livelaughlove2366]

@@drewskeez1156 depends how hard you hustlin

[@g.austins5508]

James R like I said it’s a side hustle bro , I completely understand what you’re saying I’m just saying to avoid getting sued or Garnished by irs I like doing cash in hand of course I use PayPal and Venmo if it’s whole sale cash .

[@g.austins5508]

James R I respect the hustle , we all sneaker heads and love how there’s a market just choose how you run your operations.

[@amnz19]

G.Austin S550 same bro lol cash is king! Also if your bank account hits more than 10K at one time, IRS gets alerted so just be careful

[@secretperson1182]

Dang "D" I didn't know you did this! I haven't bought J's since 2010. I just bought some 7s to get started.

[@marshallparker3956]

I appreciate all the gems bruh!!

[@Cunch]

Some serious game. Thx bruv

[@oLuckoo]

Great advice! Keep it coming my guy .

[@user-me7pn6kl2z]

Deductions are your best friend when you fill out your taxes. It’s not only favored for the rich.

[@milomunoz7232]

This videos is so good though, def better than the simple videos every one makes

[@user-wz3rf1ce1v]

Major thanks for all your help & info !!!!!!!!!!!!!!!!!!!!!

[@jesusmadero7353]

Thank you so much for the info brother.

[@devpac7861]

on point, LLC or Corp the way to go if you plan to grow ur business..I used to be sole proprietor and felt that tax hit and didn't understand that it wasn't a good idea to connect the business to my personal as they can seize my assets in a worst case scenario at the time. Never ignore taxes if u starting a business it's inevitable and must be understood..it's not as scary as you'd think learning what you need to

[@deykno87]

🧢

[@tanner4574]

Nice vid. Unlike the tee, i'd say this is very civilized advice!

[@maxheadroom1207]

I’m a CPA. The IRS is always 2 years behind on checking tax return. By the way nobody is too young to file for taxes. If you make money, you owe taxes even if you’re a baby.

[@tnogrey7877]

Unless you’re native

[@HassanRaza-ck4dh]

Legit video - you get a new subscriber lol

[@henrykooy2342]

How do you keep track of the expenditures of shoes you buy locally to resell and don’t have an actual receipt for? Do you just keep track of the price without a receipt and the IRS has to believe you?

[@bighead5849]

wondering the exact same, honestly, as most of my sales were from shoes i bought locally off other people

[@killswitchsneaks]

someone answer this

[@magnafire1]

What he really means when he says "I suggest you report them so you don't get in trouble" he is saying so those punks don't come after me again for giving you that advice lol.

[@iamleroy318]

Showed me a lot today and I don’t even sell shoes lol ...good work bro

[@DallasPalace]

Very very informative! Appreciate the advice!

[@Dreday-pw3fi]

Get that doe Frat! Good info though....i gotta get my LLC though....getting my site together now

[@SneakerPhetish]

Had to slow down Frat! Lol!

[@danieldelgado6319]

clutch af! thanks for the info!!!

[@rufus5208]

Let's get this bread

[@SneakerPhetish]

Be careful!

[@MickeyMike750]

Dammm, THIS VIDEO WAS GREAT! Thank you mann! THANK YOU!

[@laquintondavis1701]

This why Kevin hart said he has a account just for taxes that he don’t touch

[@ykucb]

Let me save you 18 minutes, he didn't pay taxes. Can already tell after only watching 1 minute

[@ricardodiaz7142]

he did but only 1k

[@drec00k206]

He did stupid should’ve watch the whole video