WASHINGTON -- The IRS has launched a campaign to help educate new self-employed small-business owners about federal tax responsibilities.
The campaign will provide new Schedule C, Profit or Loss from Business, filers with improved and updated educational materials through a variety of channels, including IRS.gov, small business workshops and other outreach events, the agency said.
Schedule C is filed by sole proprietors as an attachment to their Form 1040 individual income tax return. Self-employed individuals with less complex situations, including business expenses of less than $5,000, no net losses and no employees, may be able to file Schedule C-EZ, Net Profit for Business, according to IRS.
About one in seven federal income tax returns includes a Schedule C or Schedule C-E, the agency reported. Taxpayers filed more than 21 million Schedule Cs for tax year 2006, reporting overall net profits from sole proprietorships totaling more than $269 billion.