Advice to Would-Be Schedule C Filers: “DON’T”

Robert Flach announces his publication of a new newsletter for sole proprietors and single-member schedule C filers entitled, aptly enough, The Schedule C Letter: THE SCHEDULE C LETTER is a bi-weekly newsletter that provides tax planning and preparation advice,…

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IRS to Pursue Non Filing Businesses

Frequent readers of this blog know that we have maintained – ad nauseum, I am sure, for some – that all small businesses should incorporate or operate as an LLC in part because they are less likely to…

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May Tax Advisors tell their Clients to Form S Corporations to Reduce Their Chances of Audit

Every year the IRS publishes audit statistics showing that it audits S Corporation returns much less frequently than it audits sole proprietorship (schedule C) returns. Consequently, one of the factors business owners and their advisors have traditionally considered before choosing a form of…

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Repeal the New 1099 Law

The National Association for the Self-Employed reports that the recently enacted Healthcare law will have an onerous record-keeping effect on small businesses: Many of the nation’s entrepreneurs are about to become more familiar with IRS Form 1099….

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Tax Court Update: An IRS Agent Fails to Corroborate her eBay Expenses

In a summary opinion issued yesterday the Tax Court held that an IRS revenue officer failed to substantiate expenses she claimed in her eBay business.¹ Below is an excerpt from the Court’s opinion in Orellana v. Commissioner,…

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