Free assistance is also provided for schedules C-EZ
and small Schedule Ds (three items or less).
The fraudulent tax returns that were filed as part of the scheme included Schedules C or C-EZ
that falsely claimed that each taxpayer operated a business, such as barber or childcare, as a sole proprietorship.
Beginning with Tax Year 1992, certain smaller businesses could elect not to itemize depreciation and other business deductions by filing the Schedule C-EZ
, Net Profit from Business, a simplified version of Schedule C, Profit or Loss from Business.
Another successful recommendation was to increase the filing threshold for Schedule C-EZ
. As a result, this eased the filing burden for 500,000 small-business owners.
You will need to include the canceled debt as income on IBS Form 1040, line 21 for non-business debt, Schedule C or C-EZ
for business debt, or Schedule F as an attachment to Form 1040 for farm debt.
* Form 1040 with Schedule A, B, C-EZ
, D, Earned Income Credit, R and SE
If the embezzled funds are from self-employment activity, schedule C or schedule C-EZ
should be used and the amount is subject to self-employment taxes.
Additional forms that will be eligible for 1993 are Forms 1116, 4970, 4972, 8396, 8615, 8814, 8815 and 8828, and Schedule C-EZ
By 1992, IRS has added an instruction on the face of the Schedule E to "Report income and expenses from the rental of personal property on Schedule C or C-EZ
." These instructions appeared overly broad because they did not make an exception for personal property rental income received outside of a trade or business.
For Tax Year 2012, approximately 4.7 million taxpayers filed nonfarm sole proprietorship returns (Schedule C-EZ
), marking a 2.1-percent increase from the number filed for 2011 (Figure F).
Electing qualified joint venture status and using the Schedule C or C-EZ
does not alter the application of the selfemployment tax or the passive loss limitation rules.
An additional 400,000 small business owners can file schedule C-EZ
, a simplified form, to report their profits, because the IRS removed the $25,000 gross receipts limitation and increased the business expenses limit to $2,500.