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.
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.
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).
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.
Additional forms that will be eligible for 1993 are Forms 1116, 4970, 4972, 8396, 8615, 8814, 8815 and 8828, and Schedule C-EZ
Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on Schedule C-EZ
, by selected industrial sector.
Beginning this year, many sole proprietors will use a simplified schedule C-EZ
table, as well as amounts not itemized separately on Schedule C-EZ
. Total deductions exclude disallowed "passive
(short form) used by certain of the smaller
Beginning with Tax Year 1992, certain smaller businesses could elect not to itemize depreciation and other business deductions by filing Schedule C-EZ
, Net Profit From Business, a simplified version of Schedule C, Profit or Loss From Business.