The IRS also says a business must show a net profit for three out of the first five years of operation or be considered a hobby for tax purposes.

Well, maybe. The IRS can disallow this deduction if it believes the "business" you're engaging in is really a not-for-profit activity. That is, if the taxman sees what you're doing still as a hobby.

Industry experts warn that payroll mistakes are becoming a leading cause of tax penalties for small business owners in 2025.

Here's a comprehensive list of IRS business forms for small-business owners — plus, a brief overview of each. Many, or all, of the products featured on this page are from our advertising ...

New IRS enforcement initiative targets restaurants, salons, and other cash-heavy operations as audit risk rises in 2025 ...

Sen. Joni Ernst, R-Iowa, has asked Treasury Secretary Scott Bessent for the IRS to improve its technology so that people starting a business can apply for an employer identification number 24/7.

Concerns rise over IRS leadership shifts and staffing shortages as taxpayers await clarity on the 2026 tax filing season start date.

The Internal Revenue Service announced that the 2025 tax filing season will officially begin on Jan. 27, when taxpayers can file returns for the 2024 tax year.