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IRS Says My Side Business Is a “Hobby” — Denying $30K in Deductions

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.

Illustrative scenario prepared by my practice.

For informational purposes only. This is not legal advice.

Hypothetical question

Looking for advice on this situation. IRS Says My Side Business Is a Hobby - Denying $30K in Deductions

Details: I'm in a situation where I need to understand my legal options. Has anyone dealt with something similar?

Illustrative response

For anyone considering an Offer in Compromise: the IRS acceptance rate is about 33%. They use a formula based on your assets and income. If you can't pay the full amount, an installment agreement might be more realistic.

IRS Says My Side Business Is a “Hobby” — Denying $30K in Deductions

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