PayPal Mandatory IRS Reporting in 2011

paypal logoHere is some news everyone is going to want to pay attention too. The IRS has in effect a rule that mandates everyone report 100% of earned paypal income as of 2011.

How are they going to properly in-force this? Easy..they are forcing banks to issue 1099-K’s to anyone receiving payment from PayPal or Ebay (same company owns both). Bummer right? The bank will summarize all payments and send the summary to you at the end of the year. This means that the IRS gets a copy too. 🙂

OK..so this raises 2 questions in my mind

  1. Are people going to switch payment processors in an attempt to avoid paying taxes. (I bet many are)
  2. Are people going to open bank accounts in other countries to avoid paying taxes. (Im guessing the IRS has no authority over non US banks)

While tax evasion is illegal, it is more common than you think. We suggest you form an LLC or S-Corporation of some sort. I would definitely go talk to an accountant if you make any substantial amount of money online.

UPDATES you must meet the following criteria, if you don’t don’t worry about this it will no effect you. (here r details at paypal)

  • Receive more than $20,000 in gross payment volume in a single year, AND
  • Receive 200 or more payments in a single year.

Here is a draft of the 2011 IRS 1099-K

IRS PayPal Form 1099-K

IRS PayPal Form 1099-K

Adsense PIP October 2010

Adsense PIP Google

Adsense PIP Google

Thanks webmasters for visiting our Adsense PIP (payment in progress) for the month of October 2010. The purpose of these monthly post is to track the payments made from Google Adsense, around the world to better help gauge when you yourself might get paid.

Be sure to bookmark this page, as you have most likely not been paid yet, If you had you would not be searching for this topic right? Then make a post telling us when your Adsense payment is in progress, where you are in the world, and maybe even another post once you get paid.

It’s fun to track the payments some regions tend to get paid first.

To check your payments login to adsense and visit
https://www.google.com/adsense/reports-payment

The Unlimited Bandwidth Myth

bandwidth myth

bandwidth myth

The Unlimited or Unmetered Bandwidth Myth is one that nearly every major shared hosting company employs to entice you to use their hosting service. I’ve had my “unlimited bandwidth” revoked on a few different sites by both HostMonster, and LunarPages. I’m sure some of you have had similar issues with other hosting companies.

So why is it a Myth?
Well it is and it isn’t. Bandwidth with these companies is unlimited assuming you don’t use to much. When you start requiring GB of data daily they start looking at your account, and trying to find other things wrong with your account. Most usually that other thing is CPU usage. The message you receive is usually something like this.

“Your user account was recently audited and found to be using more than the allowed percentage of cpu  usage. In order to provide reliable service to our customers  we have temporarily suspended your account until you resolve the issue. You may want to consider upgrading to one of our premium packages”

They then send you a list of all running processes.  Near extortion, heaven forbid you are on a vacation and don’t get the message for a week. By that time your website is deindexed, and your users are gone.

Bandwidth cost them money. Most host (including hostmonster) rent servers from other organizations. They pay bandwidth. If you use to much then they are loosing money on you as a customer. If they loose enough they threten to termenate your account unless you upgrade to a vps or dedicated server. I don’t think hostgator offers vps, i know lunarpages does.

So these larger packages cost anywhere from $50 a month to $1000 a month depending on what exactly you need.

So they suck you in with the low rate packages and if your site does well they press you to upgrade.

It’s a business model that seems to work. It’s being done across the web. I’m not complaining, I’m just trying to shed some light on the myth.

Hope this helps someone, we’d love to hear your input.

Photo from Bibi Saint-Pol Creative Commons

Laptop Battery Life

power saver mode

power saver mode

The average life of a Laptop battery is around 2-4 years. This all depends on a multitude of factors, most actively are the number of cells in the batters. A 6 cell battery will inevitably last a shorter amount of time than a 9 cell. That’s just the way it works.

Here is something to ponder just a second. They will warranty a Hard Drive for 5 years, a Mother Board for 5 Years, but not one will Warranty a battery past 2 years. What does that tell you about our technology?

I’ve heard all sorts of things when it comes to laptop batteries. I’ve heard they have battery member, I heard you should let them fully charge, and fully drain before plugging them back up to charge.

It seems to be however that no matter what I do (just short of sticking them in my closet for a few years)  they don’t seem to last very long.

laptop battery sony viao

laptop battery sony viao

You can recharge an average lithium ion battery 500-1000 times before the battery becomes ineffective. You figure that’s about 1x a day for 2 years or so. That’s all.

Of course you can implement Power Saver mode and let your laptop standby after so many minutes of misuse. This may give you a longer battery life because there is less need to charge the battery.

The point of the matter is that your laptop battery is going to ware out before your laptop does. With average laptop battery cost being around $130, and average Laptop prices being somewhere between $400-$800 you can see that it’s a large percentage of the laptop’s cost. So after 2 years when your laptop battery goes out, and you need to spend $130 for a new one. You start thinking really hard…do I want to spend $100+ for a laptop battery? or $400 for a new laptop? Most people end up buying a new laptop. A great marketing scheme if i do say so myself.

Note: Your laptop will function as a desktop permanently, even with the battery removed, so long as it’s plugged in. Just food for thought.

Creative Commons image liewcf