2009 SWDG Recommendation Summary

Income Reporting and Schedule C Issues

The group identified the following common income-reporting issues:

  • Questionable Schedule C income to qualify for EITC, for example taxpayers with no Form 1099
  • Questionable Schedule C losses that reduce other income and qualify taxpayers for EITC
  • Schedule C income but no records for income or expenses
  • Income from Schedule C business, but no expenses when similar businesses have expenses

 

The group identified recommendations including form changes, software enhancements, and new training material. The SWDG  will develop the following recommendations in greater detail:

  • Add a "1099 Present" checkbox to the Schedule C to improve the validation and recording of  Form 1099 data
  • Include alert messages (such as, pop up messages) in software for common Schedule C problems.
  • Develop training materials regarding Schedule C
  • Develop training document to assist preparers in helping clients reconstruct income and expenses

 

   

Annual Reports

Recommendation Summaries

 

The Software Developers Working Group would like to hear from you. Send any suggestions for improving tax preparation software or the administration of EITC and other refundable credits to:


EITC.Program@irs.gov

 

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Page Last Reviewed or Updated: 26-Sep-2013