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Gerald, Esq
Gerald, Esq, Lawyer
Category: Business Law
Satisfied Customers: 3822
Experience:  30 years of experience
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I forgot to publish my starting business in the local papers

Customer Question

I forgot to publish my starting business in the local papers this past spring. Will that have an effect on my taxes?
Submitted: 1 year ago.
Category: Business Law
Expert:  Gerald, Esq replied 1 year ago.

Hello,

Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

The newspaper issues is not controlling. The IRS does not care what type of records you keep so long as you can demonstrate your income and expenses. In regard to first year expenses, I assume you are referring to the provisions in the IRC that permit you to take a $5,000 business start up deduction in the first year of your business.

You are able to deduct up to $5,000 of your qualifying start-up costs (subject to first-year deduction phase-out when your expenses reach $50,000). For your tax return for the year the business commences you may deduct the lesser of:

  1. your actual expenses with respect to the new business; or
  2. $5,000, reduced by the amount by which the start-up expenditures with respect to the active trade or business exceed $50,000.

The remainder of your start-up expenditures is deducted prorated over the 180-month period beginning with the month in which the active trade or business begins.

As to proof that you started the business, the IRS does not care what type of records you keep. Advertising, Internet presence, incorporation, newspaper notices, or any evidence that shows you successfully started the business will do. You do not file this information, you keep it with your records in the event of audit.

Review these resources for more detailed information:

https://www.irs.gov/publications/p583/ar02.html#en_US_201408_publink1000253168

https://www.irs.gov/publications/p535/ch08.html

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