@rainystripe wrote:
Sorry for the confusion.
At the end of the year the app totals how much I 'made' for the shops I did to show how hard we worked it. So in total I made the 55k$ worth of transactions with the company card, I however, am just doing the shopping for them and from that I myself only made 10k. IRS claims they saw I made 55k somehow like I kept it all which I didnt.
This explanation still leaves a lot of holes. I can't tell what you mean by using a company card to show how hard you worked, and I wonder what is really going on.
Regardless, if you have $50,000 in gross sales and $40,000 in expenses, you have to report it that way on schedule C. You can't just report the the net. And different expenses go on different lines (inventory, taxes, payroll, shipping, etc.).
If you reported $10K of miscellaneous income, then you also skipped paying self-employment tax.
You may be able to send a new schedule C and schedule SE, along with a PNL or spreadsheet listing your gross income and expenses, without sending a full amended return. Or you may need to send a full amended return. Either way, the IRS wants to see your gross income and expenses. They may come back and ask for further detailed proof of your expenses.
