what does the IRS think of bartering?
Some business people worry that The IRS might take a dim view of bartering. As a result, they may think that bartering would subject them to audits or additional scrutiny. The truth is that a company using barter is no more likely to get audited than a company that doesn’t. IRS rules concerning barter are now well-established, and the government considers the barter industry to be a perfectly legitimate industry. Treat barter as you would any other business activity. Keep good records and consult your CPA if you have specific questions regarding maximizing your bartering experience and bartering as it relates specifically to your business goals. Handling barter transactions properly ensures that bartering will be a profitable and meaningful part of your business. Are Small Businesses that barter required to collect Michigan sales tax? Yes, small businesses must collect the applicable Michigan sales tax when goods are sold on barter or services are purchased- from the buyer, as they wou
