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-EZSchedule C-EZ. Total deductions exclude disallowed "passive
Schedule C-EZ (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.