In a move aimed at reducing the paperwork burden for small businesses, the Internal Revenue Service said it would boost the number of small businesses eligible to file a simplified expense form.
The IRS will double the business expense threshold to $5,000 from $2,500 for filing the Form 1040, Schedule C-EZ. The IRS says the change will mean a savings of five million hours of paperwork for small business taxpayers. The threshold change means approximately 500,000 more small businesses -- a 15-percent increase - would be able to file the Schedule C-EZ, the agency said.
The Schedule C-EZ, established in 1992, was intended to make it easier for small businesses with modest expenses to file a simplified form. Small business owners that file a Form 1040 use the Schedule C to report profits and expenses.
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