|
- Click sponsor logos for whitepapers, case studies, and best practices.
-
-
-
-
-
-
-
-
-
-
-
-
Digital Communities
Industry Members
Philadelphia Bloggers Who Make Money Ordered to Pay City Business License Fee
August 24, 2010 By Karen Wilkinson
Philadelphia city officials are adamant that they're not singling out bloggers -- just those who reported business income to the IRS, but didn't follow proper procedure with the city.
Through an "information sharing agreement" with the IRS, Philadelphia recently identified 32,000 people who earned (or lost) business income last year, but failed to inform the city of such dollars and obtain the required "business privilege license." It's unclear how many bloggers received letters from the city when they were sent out in May, as such specifics aren't required on tax forms, but city officials estimate it's a low number.
Regardless, the cash-strapped city's stepped-up enforcement and its impact on bloggers came as a shock as Philadelphia is the first known city in the U.S. to do so. As well, most bloggers don't make a living from their online writings, which is more often a hobby than a source of revenue. The Philadelphia City Paper recently cited the example of blogger Marilyn Bess, who makes about $50 a year from what she considers a hobby. With a price tag of $50 a year or $300 for a lifetime license, bloggers may end up paying more in taxes than they earn from typically meager ad sales.
But city officials say it doesn't matter how individuals earn the money -- or how much -- just the fact that they earn any makes them subject to its business license requirements.
"We are using data from the IRS and being aggressively proactive about going after any and all businesses," said Philadelphia Revenue Commissioner Keith J. Richardson. "And we want a level playing field to make sure everyone is paying their fair share. Citizens and taxpayers understand we're not going after one specific group of taxpayers or businesses."
Philadelphia officials said they're not trying to deter such online mediums -- or any small business. They just want the city to collect its fair share in fees.
"I think the city of Philadelphia ... is very friendly to freelancers and the arts industry," Richardson said. "I think we've done a good job of selling that -- and even those with blogs. We're not trying to scare [them] away; we want them to be there, but want accountability for a small business."
In Our Library
- Are You Sure You Are Maximizing the Value of Your Microsoft SharePoint Investment?
- The Microsoft SharePoint platform provides a wealth of opportunities for any organization to streamline business processes and expand knowledge sharing; however most government organizations struggle to take advantage of these opportunities.
- Hurricane Preparedness
- Make sure you are prepared for hurricane season before it is here. Join in this Digital Communities teleconference and gain insight on how to prepare from experts who have been on the ground during major hurricanes.
- Kofax Analytics for Capture
- Does your agency struggle to add Business Intelligence to your capture operations? View All
Latest From Digital Communities Features
- Opting for On-Premise File Storage Over the Cloud
- New Program Lets Davis, Calif., Residents Monitor Water Use Online
- Column: Cyber Attacks -- the Reality, the Reason and the Resolution. Part 1
- Using Social Media and Mobility to Promote 'Ag Tourism'
- Four Questions with Orlando, Fla., CIO Rosa Akhtarkhavari
Subscribe to Digital Communities
Digital Communities (DC) is e.Republic‘s local government program. The particular strength of DC is its focus on encouraging collaboration and creating productive relationships between and among cities, counties, regions and select private sector companies uniquely positioned to help improve the delivery of public services.
Subscribe | View Digital Issue
Government Best Practices
Featured White Papers & Reports
Government-to-Government IT Services: What Works and What's Left to Work OutThis Digital Communities white paper highlights discussions with IT officials in four counties that have adopted shared services models. Our aim was to learn about the obstacles these governments have faced when it comes to shared services and what it takes to overcome those roadblocks. We also spoke with several members of the IT industry who have thought long and hard about these issues. The paper offers some best practices for shared government-to-government services, but also points out challenges that government and industry still must overcome before this model gains widespread adoption.
View Full Library
Events
Don't miss this opportunity to see the latest in digital government solutions, keep abreast of current policy issues and network with key government executives, technologists and industry specialists.
This, unfortunately, is a "micro" example of the challenges that unrestrained bureaucratic rules and regulations inhibit the growth of free enterprise. Many of these 'fledgling' young blogentrepeneurs could eventually develop significant businesses, but many, under the threat of ridiculous tax rules and threat of IRS seizures, will never crack the egg and truly spread their wings to fly. And if they don't fly, they don't employ others in the future. Which, I guess is ok, I hear the federal government needs another 1600 IRS agents or so...(this year, anyway)!
This, unfortunately, is a "micro" example of the challenges that unrestrained bureaucratic rules and regulations inhibit the growth of free enterprise. Many of these 'fledgling' young blogentrepeneurs could eventually develop significant businesses, but many, under the threat of ridiculous tax rules and threat of IRS seizures, will never crack the egg and truly spread their wings to fly. And if they don't fly, they don't employ others in the future. Which, I guess is ok, I hear the federal government needs another 1600 IRS agents or so...(this year, anyway)!
This, unfortunately, is a "micro" example of the challenges that unrestrained bureaucratic rules and regulations inhibit the growth of free enterprise. Many of these 'fledgling' young blogentrepeneurs could eventually develop significant businesses, but many, under the threat of ridiculous tax rules and threat of IRS seizures, will never crack the egg and truly spread their wings to fly. And if they don't fly, they don't employ others in the future. Which, I guess is ok, I hear the federal government needs another 1600 IRS agents or so...(this year, anyway)!