IRS to Target Schedule C Filers
In a recent telephone conference, IRS commissioner Mark Everson said that they will be conducting more audits on individuals running unincorporated businesses (i.e. self-employed individuals).
While Schedule C filers have long been audit targets for the IRS, they are now stepping up their audit efforts because they believe that self-employed individuals represent a large portion of those individual taxpayers underreporting their income.
If you are self-employed and file Schedule C, always keep detailed and organized records, don’t deduct your personal (non-business) expenses on your Schedule C and make sure you report all of your income. You are already on the IRS radar; there’s no need to make their job easier.