IR-2004-119, Sept. 23, 2004
WASHINGTON ¡ª The Internal Revenue Service today announced it will expand the number of small businesses eligible to file a simplified expense form, a move that will save money and reduce paperwork burden.
The IRS will double the business expense threshold to $5,000 from $2,500 for filing the Form 1040, Schedule C-EZ. 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 ¨C a 15 percent increase ¨C will be able to file the Schedule C-EZ.
¡°This is another example of the IRS taking the lead in reducing the burden on taxpayers. The IRS¡¯ Office of Taxpayer Burden Reduction is continually reviewing what steps we might take that will save money and work hours for both businesses and individuals,¡± said Mark W. Everson, Commissioner of the IRS.
The Form 1040, Schedule C-EZ was first established in 1992. It 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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