The IRS’s Small Business/Self-Employed Division (SB/SE) has undertaken a new program for auditing expenses taken on Form 1040, Schedule F, Profit or Loss From Farming. The IRS believes that there may be compliance issues such as deducting expenses on the wrong form, deducting expenses actually belonging to another taxpayer, or deducting hobby losses. Another area of concern is fuel and whether fuel was used for nondeductible personal (as opposed to farm) use.

To read the full article and learn about the pilot program click here: IRS initiates pilot program for auditing farmers’ Form 1040, Schedule F expenses.

Credit to: tax.thomsonreuters.com
IRS initiates pilot program for auditing farmers’ Form 1040, Schedule F expenses
Thomson Reuters Tax & Accounting News
Checkpoint Daily Newsstand
March 6, 2017