Assigned EIN - not in use

[LTM1]

I notionally had a business idea that I planned to operate as a sole proprietorship this past year while ascertaining its full viability to generate revenue. It does have an EIN associated with it, but otherwise is not a registered functioning business and has generated no income to date. It does have expenses associated with it, mainly marketing costs incurred.

Would this be something I still need to file and report on my schedule C anyway?  If there are only losses and no income associated with it and it's not a registered business entity outside of the affiliated EIN?

[K M W]

If there were no income and no expenses, then you would have nothing to report on Schedule C.

However, to the extent there are valid business expenses, even with no income, you should report the expenses on your tax return.

Use Schedule C (Form 1040) to report income or (loss) from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity.

One thing to note - if the expenses incurred this year are considered start-up/organizational costs, then you would not deduct these expenses until the year the business begins. You mentioned they are marketing costs - to the extent your business is "open", and incurred marketing expenses, those would be an expense on the current year Schedule C.

IRS Publication 535, Business Expenses, is a great resource for answers on deductible expenses.  A link to this IRS Publication is here: IRS Publication 535