sole proprietors « Small Business Startup Information

Those $%*#@ blankety-blank 1099s

In the financial world, January in the US is known as “1099 month.” Banks, brokerages, payroll services, and CPAs spend many hours preparing the documents. Taxpayers wait for them with mixed emotions, knowing they need the information to do their tax returns and at the same time dreading having to figure out exactly what numbers to report where.

The IRS loves 1099s. Continue reading

Solo Business Owners: Beware of IRS Focus on Schedule C

The IRS is planning to focus a lot more on the Schedule Cs that are filed with taxpayers’ 1040s this year because they think that’s a major source of the tax gap. That’s the difference between what the IRS thinks taxpayers should be paying in Federal income taxes and the amount that taxpayers actually report as their tax liability.

What causes the tax gap? Continue reading