Hello - I recently receive a notification from IRS to make the case whether my business is a hobby or a business. In order to classify as a business , I am being asked to write a statement how I plan to make the business profitable going forward. Now, Is that normal for IRS to ask? if there is something more to come? Lastly, If I were to dissolve this business, would IRS make me pay all the tax write-off and charge a penalty? I really don't know and this is the reason why I am asking. Any help is appreciated.
thanks,
