Finally some answers, 12C Letter recieved

[Anonymous]

Has anyone who has been delayed filing a Schedule C and/or Schedule SE?

I filed and was accepted on 2/1. Bar disappeared on 2/14. Transcripts still showing n/a.

Yesterday I received a 12C Letter from the IRS. The letter said I may owe additional taxes for self-employment income, and asked me to file a Schedule SE for income stated on Line 57 of Form 1040. No problem, except that I had no income entered on Line 57.

I operate 2 separate businesses, one had losses that offset the profits on the other business.

This is a direct quote from the Schedule SE Instructions:
“More Than One Business
If you had two or more businesses subject to self-employment tax, your net earnings from self-employment are the combined net earnings from all of your businesses. If you had a loss in one business, it reduces the income from another. Figure the combined SE tax on one Schedule SE.”

I should say that I filed using HRB Deluxe.

Up until yesterday I had maintained my resolve and didn’t bother to call the IRS, wasting my own time to ask questions that couldn’t be answered. I had no idea why my tax return hadn’t been processed. When I finally did call I was told to comply with the letter. File a form that I’m not required to file. Write an explanation stating why I do not owe self-employment tax.

I maintain that these delay tactics are an attempt to skim from the taxpayers. If I hadn’t replied, filing the form I don’t need to file, my taxes would be manually adjusted to reflect self-employment taxes on the business that did indeed have profits.