Schedule C Tax Filers are Audit Targets

Recent conversations held by the IRS have shed light on their intensions to perform more audits on individuals who are self-employed. If you are an individual who is running an unincorporated business you are now more of an audit target.

The IRS as always considered these filers audit targets but now they are increasing the focus because the assumption is that these Schedule C Tax Filers are not reporting their income.

All you have to do is keep good detailed and organized records if you are self-employed and are going to file a Schedule C. Remember, Do-Not deduct personal expenses on the Schedule C. The fees and penalties you will pay if you are caught in an IRS audit are not worth it. Always report all of you income. If you have a business and are making money then reporting it should be a good thing. If you have to pay taxes then you must be making money!