IRS Says My Side Business Is a “Hobby” — Denying $30K in Deductions

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Started by AccountantSteve_26 · May 31, 2023 · 1 replies
For informational purposes only. This is not legal advice.
HL
AccountantSteve_26OP

Looking for advice on this situation. IRS Says My Side Business Is a Hobby - Denying $30K in Deductions

Details: I'm in a situation where I need to understand my legal options. Has anyone dealt with something similar?

HL
AccountantSteve_26OP

Update: Thanks everyone for teh guidance. I consulted with an attorney and we're moving forward. The advice here helped me understand what questions to ask and what to expect. Will update when there's a resolution.

BN
beth_nyc_9

For anyone considering an Offer in Compromise: the IRS acceptance rate is about 33%. They use a formula based on your assets and income. If you can't pay the full amount, an installment agreement might be more realistic.