For the 2011 tax year, more than 207,000 taxpayers had SEP contributions totaling $1.7 billion. A report from the Treasury Inspector General for Tax Administration found that some of these deductions claimed by self-employed individuals for their SEPs were improper (e.g., claiming a SEP contribution deduction even though no Schedule C, E, or F reporting self-employment income was filed). If the IRS improves controls, it could prevent improper deductions and potentially protect $71 million in revenue over 5 years.
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Pleased to announce that my book, J.K. Lasser’s Small Business Taxes, has been nominated for a Small Business Book Award!
