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Are you flagged for changing business status per tax year?

From 2007-2008, my accountant filed a 1040 plus business forms for me in addition to my 1099 from my contact job. However, for the past 2 years, I've gotten way behind on my business paperwork, and I'm tempted to just file a 1099 and be done with it - fines and all. Will this raise flags with the IRS? FYI - My business is fine art and home decor items. In 2009-2010, I did spent quite a bit of money on supplies, market fees, product research and development, etc., but it's not a full-time income.

3 Answers

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  • 1 decade ago
    Favorite Answer

    Don't even THINK of "forgetting" your business income. When it blows up in your face, the "fines and all" could easily double your pain with the IRS.

    Get off of your butt, get the paperwork caught up, and get with the program.

  • tro
    Lv 7
    1 decade ago

    the 1040 business form is Sch C which you would file on any self employment income

    this may or may not be entirely reported to you in a 1099, you may have income of lesser amounts but still need to be reported

    you need to get working on getting your accounting together to file what you need to, there will be late penalties and interest accrues daily

  • Anonymous
    1 decade ago

    You should file and depending on your income .You could be in line for a tax rebate

    Source(s): Life And Taxes
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