Why is there an IRS Focus on Schedule C Filers?
The biggest portion of unpaid taxes is in underreporting of income by individuals. These individuals are small unincorporated businesses that many times don’t have an accountant to advise them on business matters and deductions. Some IRS audits can be very aggressive whereas the bank accounts are reviewed very closely. Schedule C filers are more likely to either try to deduct personal expenses or omit income from their returns. How Can a Schedule C Filer Reduce His Taxes? The best opportunity for any small business owner is to purchase new equipment or furniture that is bought and used in their business. There is a tax rule known as Section 179 that allows companies to deduct up to $125,000 for new asset purchases. Can a Schedule C Filer have his own Retirement Plan? Yes. There are opportunities known as a SEP IRA or a Keogh Plan that are great retirement savings plans available for self-employed individuals. Every retirement plan has rules and regulations so it is advisable to have a
