Paying taxes on your advertising revenue?

[Dusty]

A while go people said they only tax you if you get more than 300$ a month

A sole-propietor business (like your website) with a net income of $400 or more must file a federal income tax return. If it's under that, don't worry about it. If you run more than one business then the combined income must be under $400 or you'll have to file a return. A partnership, corporation, or LLC must file a return regardless of the net income.

well how come companies dont just ask for the SS# when you get closer to that range?

The advertiser needs your SS# in case they're audited. They need proof that the money they're paying you is actually going to you.

 

[Dusty]

What will happen if you don't pay taxes:

If the money you make is taxable and you neglect to declare it, 98% chance is that nothing will happen and you'll get away with it for years. The IRS doesn't know and won't find out unless someone tells them. Usually the snitch is a 1099 form, but a business based solely on ad sales isn't likely to have any dealings with those.

However, if you are by some means or another caught, what would happen depends on how your react. You'll probably receive a letter of inquiry and most likely a bill to go along with it. If you willingly pay the back taxes, you're fine, and the IRS will almost always grant amnesty, meaning you don't have to pay any additional penalties. If you don't willing pay the bill and you continue to evade taxes, then there'll be criminal charges filed against you and you face heavy fines and jail time.

Falsifying information, like giving a fake SS# number, and collecting money on it is highly illegal and it won't be as easy as just paying back what you owe if you're caught. I strongly suggest you don't do that.