The IRS has not made a final determination. I'm trying to stay one step ahead of them by knowing the law. If I don't claim the payment by my sig other, my income drops to below $25,000 and I have significant less taxes however, when I talked to the auditor last time, she said that because in that year 2018, I made less then the other 10 years (which I filed and paid taxes on approx 40k per year) they would not allow the $16,000 in expenses because she does not believe I'm a business but instead a hobby. They have not made a final determination and I believe if I have proof that those expenses related to my LLC (which I do, they are vet bills and food bills), they cannot just disregard those expenses. I believe there is a long standing rule about that called the Cohen Rule. I believe this rule will cover my expenses in this instance. The IRS has been auditing me since last July, calling me without appointments and trying to justify their audit. If they took away the $16,000 in expenses that would mean I pay another $200 in taxes. Is this really worthwhile to the IRS? this is what is wrong with our system. Now they are going to be opening an entire department to "catch" those people who sell odds and ends and earn small amounts of under the table income...reporting income above $600. what a bunch of crap and does the IRS really think people will pay? No they will build a better mousetrap.
