I am a sole proprietor with less than $200k in sales, and I have a rolling inventory of goods on hand for sale at all times. I have read, and would like it confirmed, whether or not my business is exempt from reporting an inventory since gross receipts are less than $1M. The past number of years I thought I was doing the right thing by reporting inventory and thus have been paying a lot of money in taxes. Is it possible to not report an inventory and only list the COG expense under materials and supplies as I have read? Also, can I amend my previous years of returns and possibly recoup some of that tax money I spent by reporting my inventory?
Thanks so much!!!
