January 25, 2009 8:22 AM EST
I`ve never failed to file, though 2007 was filed in October. I am now preparing to send my EA the 2008 data and wondering if I made enough effort in late 2008 to justify the expenses in the eyes of the IRS. As I said, I went to a few training seminars related to my field, kept up and developed new strategic relationships, and kept my website up to date (more or less, more less than more). I am starting 2009 with renewed effort to find new business and will possibly end the year in the black.
But, as you say, I am in a high risk (I.E. for IRS review) if my Schedule C shows zero revenue.
Maintaining the domain name renewals and web site maintenance is probably explainable, but it`s the capital expenditures that I think would pull the trigger on my file at the IRS.
At this point, I am leaning toward just claiming those two items as expenses and eat the cost of the capital equipment purchases as the price to pay for staying off the IRS radar.
Thanks for your input - you have validated what my EA said.
MannMade Digital Video