Oct. 4, 2004: IRS Change To Reduce Paperwork For Small Businesses
WASHINGTON - The Internal Revenue Service (IRS) announced that it will expand the number of small businesses eligible to file a simplified expense form. The IRS is doubling the business expense threshold to $5,000 from $2,500 for filing the Form 1040, Schedule C-EZ. This change came as a result of a recommendation by a Taxpayer Advocacy Panel subcommittee - Schedule C Fair Compliance Committee, Outreach, Education and Filing Subcommittee.
According to officials, the change will mean a savings of 5 million hours of paperwork burden for small business taxpayers. The threshold change means approximately 500,000 more small businesses - a 15 percent increase - will be able to file the Schedule C-EZ.