According to a recent report by the IRS, auditors are going to be stepping up their audits of sole proprietors, looking for unreported income and unfiled tax returns. In addition to searching for unreported income, the IRS will be looking for sole proprietors who did not file required employment tax returns or information returns. How to prepare your business in case the IRS comes knocking? It … [Read more...]
Sole-Proprietor Losses to be Limited?
According to a new report by the Government Accountability Office, about 25% of all sole proprietors reported losses in 2006. Most of these business owners used their self-employment loss to offset other taxable income, leading to a significant loss of tax revenue for Uncle Sam. According to the IRS, approximately 70 percent of those losses were at least partially a result of taxpayers … [Read more...]