Discussion:Schedule C, 2004
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| So, the big boys don't get called on this issue but the small C corps do? I always recommend to my clients that they "keep all receipts while transacting anything related to their business". Yall's insight will be appreciated. I am getting ready to suggest to my client that she request a hearing with the IRS auditor's superior.}} | So, the big boys don't get called on this issue but the small C corps do? I always recommend to my clients that they "keep all receipts while transacting anything related to their business". Yall's insight will be appreciated. I am getting ready to suggest to my client that she request a hearing with the IRS auditor's superior.}} | ||
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| + | {{ForumReplyPost|UserID=TxSrv|Date=19 February 2008|Text=''"So, the big boys don't get called on this issue but the small C corps do?" | ||
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| + | You mean Fortune 500 companies? IRS can't spend valuable audit time looking at that kind of stuff, unless known it would be productive (as in ''informant''). real big issues elsewhere on those companies, and only so many staff-years to do them every year.}} | ||
Current revision
Discussion Forum Index --> Tax Questions --> Schedule C, 2004
Beesandsac (talk|edits) said: | 6 February 2007 |
| I recently almost resolved a 2004 tax issue with the IRS where they had erroneously calculated in 2004 that all stocks I had sold were purchased at a "zero cost basis". After back and forth, they eventually saw that I did not owe 20k but owed about 4k instead. But in communications with them, I also learned that because I worked as a WRITER for a COMPANY on a "contract" basis (no taxes taken out, nothing)...they considered me as "self employed". (Although I don't have a business license).
After meeting with the IRS helper locally, she said, at the end of the meeting..."and I assume you filed a schedule C for 2004"? I said, "what's a Schedule C?" She explained that as a self employed person, I could deduct business expenses for that year. I did spend money for gas to get back and forth to work that year, which is documentable through my credit union debit card record of going to the gas station. Can I now fill out a Schedule C, should I, and if so, what sort of things can I deduct? Also, what documentation do I need to provide? All I really did in going to work for the company was to buy gas and buy lunch sometimes when I was there. Thanks to anyone who knows. | |
| 6 February 2007 | |
| yes, yes, ordinary and necessary expenses, see Publication 334, don't take commuting | |
| 6 February 2007 | |
| FYI, credit card and debit card records of gas receipts are not sufficient evidence to support a business deduction. As an auditor told me, there needs to be something that shows that GAS was purchased at these gas stations.
In addition, it sounds like a contemperaneous mileage log wasn't completed, so you probably will have troubles in deducting travel costs any way. | |
| 6 February 2007 | |
| Beesandsac: When you said "What is a Schedule C? What you were really saying was ... "I need Professional tax help. | |
Bottom Line (talk|edits) said: | 7 February 2007 |
| Hire a pro | |
| 19 February 2008 | |
| I've been doing taxes for over 20 yrs along with accounting and bookkeeping work. About 5 yrs ago, after realizing that professional certification may help my income, I chose to complete the qualifying requirements for the CPA exam here in Texas. As I have updated my accounting hours and continued to do accounting and tax work, I am seeing that some of the basic tax rules are being arbitrarily allowed and denied by the IRS during tax audits. Case in point: I have a client who uses an AMEX card strictly for business. She has all of her monthly statements to support all the charges which I book to various expense accts. The IRS auditor is disallowing all the expenses listed on her AMEX statements but is allowing business expenses her husband charged to his AMEX credit card and listed on his AMEX monthly statement. When I did a contract job at Shell, they would consistly submit corp credit card statements as backup for travel expenses for their employee. And on the IRS website, this topic of acceptable support for business expenses on a credit card was illustrated with a list which included monthly statements OR credit card sales slips.
So, the big boys don't get called on this issue but the small C corps do? I always recommend to my clients that they "keep all receipts while transacting anything related to their business". Yall's insight will be appreciated. I am getting ready to suggest to my client that she request a hearing with the IRS auditor's superior. | |
| 19 February 2008 | |
| "So, the big boys don't get called on this issue but the small C corps do?"
You mean Fortune 500 companies? IRS can't spend valuable audit time looking at that kind of stuff, unless known it would be productive (as in informant). real big issues elsewhere on those companies, and only so many staff-years to do them every year. | |
