Form Schedule C-EZ (For Schedule C-EZ (For Net Profit From Business

2009 Schedule C-EZ (Form 1040), Net Profit From Business
Purpose: This is the first circulated draft of the 2009 Schedule C-EZ (Form
1040) for your review and comments.
TPCC Meeting: None, but may be arranged if requested.
Prior version: The 2008 Schedule C-EZ (Form 1040) is available at:
http://www.irs.gov/pub/irs-pdf/f1040sce.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, call, or mail any comments by July 6, 2009.

Kevin Coulter
Tax Forms and Publications
SE:W:CAR:MP:T:I:F
Email: [email protected]
Phone: 202-622-3716
Fax: 202-927-6234

Major Changes to 2009 Schedule C-EZ (Form 1040)
1. All years are updated appropriately.
2. We made changes to references to the instructions for Schedule C-EZ for
consistency and references to the instructions for Schedule C for clarity
(for example on line “B”, line 2, line 5b, and line “a” of the optional
worksheet for line 2).
3. We revised line “D” on page 1 and added language to the instructions for
line D on page 2 to clarify the proper EIN to enter, per a request from
SE:S:E:EP. Some taxpayers have been entering on line D the EINs from
Forms 1099-MISC that they received.


Department of the Treasury
(99)
Internal Revenue Service

Attachment
Sequence No.

09A

Social security number (SSN)

General Information


You May Use
Schedule C-EZ
Instead of
Schedule C
Only If You:

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2009

(Sole Proprietorship)
Partnerships, joint ventures, etc., generally must file Form 1065 or 1065-B.
 Attach to Form 1040, 1040NR, or 1041.  See instructions on page 2.

Name of proprietor

Part I

OMB No. 1545-0074

Net Profit From Business

SCHEDULE C-EZ
(Form 1040)



● Had business expenses of $5,000 or
less.

● Had no employees during the year.
● Are not required to file Form 4562,
Depreciation and Amortization, for
this business. See the instructions
for Schedule C, line 13, on page
C-5 to find out if you must file.
● Do not deduct expenses for
business use of your home.
● Do not have prior year unallowed
passive activity losses from this
business.

● Use the cash method of accounting.
● Did not have an inventory at any
time during the year.

And You:

● Did not have a net loss from your
business.

● Had only one business as either a
sole proprietor, qualified joint
venture, or statutory employee.

A

Principal business or profession, including product or service

B Enter business code (see page 2)

C

Business name. If no separate business name, leave blank.

D Enter your EIN (see page 2)

E

Business address (including suite or room no.). Address not required if same as on page 1 of your tax return.



City, town or post office, state, and ZIP code

Part II
1

Figure Your Net Profit

Gross receipts. Caution. See the instructions for Schedule C, line 1, on page C-4 and check
the box if:
● This income was reported to you on Form W-2 and the “Statutory employee” box
on that form was checked, or
● You are a member of a qualified joint venture reporting only rental real estate
income not subject to self-employment tax.





1

2

Total expenses (see page 2). If more than $5,000, you must use Schedule C

2

3

Net profit. Subtract line 2 from line 1. If less than zero, you must use Schedule C. Enter on
both Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR, line 13. (If you checked
the box on line 1, do not report the amount from line 3 on Schedule SE, line 2.) Estates and
trusts, enter on Form 1041, line 3

3

Part III

Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 2.
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4

When did you place your vehicle in service for business purposes? (month, day, year)

5

Of the total number of miles you drove your vehicle during 2009, enter the number of miles you used your vehicle for:

a Business

b Commuting (see page 2)

.

c Other

6

Was your vehicle available for personal use during off-duty hours?

Yes

No

7

Do you (or your spouse) have another vehicle available for personal use?

Yes

No

Yes

No

Yes

No

8a Do you have evidence to support your deduction?
b If “Yes,” is the evidence written?
For Paperwork Reduction Act Notice, see page 2.

Cat. No. 14374D

Schedule C-EZ (Form 1040) 2009

Schedule C-EZ (Form 1040) 2009

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Page

You can use Schedule C-EZ instead of Schedule C if you
operated a business or practiced a profession as a sole
proprietorship or qualified joint venture, or you were a
statutory employee and you have met all the requirements
listed in Schedule C-EZ, Part I.

commissions and fees, insurance, interest, legal and
professional services, office expenses, rent or lease
expenses, repairs and maintenance, supplies, taxes, travel,
the allowable percentage of business meals and
entertainment, and utilities (including telephone). For details,
see the instructions for Schedule C, Parts II and V, on pages
C-4 through C-9. You may use the optional worksheet below
to record your expenses. Enter on lines b through f the type
and amount of expenses not included on line a.
If you claim car or truck expenses, be sure to complete
Schedule C-EZ, Part III.

Line A

Line 5b

Instructions

Before you begin, see General Instructions in the
2009 Instructions for Schedule C.
CAUTION

Describe the business or professional activity that provided
your principal source of income reported on line 1. Give the
general field or activity and the type of product or service.

Line B

Enter the six-digit code that identifies your principal business
or professional activity. See pages C-9 through C-11 of the
instructions for Schedule C for the list of codes.

Line D

Enter on line D the employer identification number (EIN) that
was issued to you on Form SS-4. Do not enter your SSN. Do
not enter another taxpayer’s EIN (for example, from any
Forms 1099-MISC that you received). If you do not have an
EIN, leave line D blank.
You need an EIN only if you had a qualified retirement plan
or were required to file an employment, excise, estate, trust,
or alcohol, tobacco, and firearms tax return. If you need an
EIN, see the Instructions for Form SS-4.

Line E
Enter your business address. Show a street address instead
of a box number. Include the suite or room number, if any.

Line 1
Enter gross receipts from your trade or business. Include
amounts you received in your trade or business that were
properly shown on Forms 1099-MISC. If the total amounts
that were reported in box 7 of Forms 1099-MISC are more
than the total you are reporting on line 1, attach a statement
explaining the difference. You must show all items of taxable
income actually or constructively received during the year (in
cash, property, or services). Income is constructively received
when it is credited to your account or set aside for you to
use. Do not offset this amount by any losses.

Line 2
Enter the total amount of all deductible business expenses
you actually paid during the year. Examples of these
expenses include advertising, car and truck expenses,

2

Generally, commuting is travel between your home and a
work location. If you converted your vehicle during the year
from personal to business use (or vice versa), enter your
commuting miles only for the period you drove your vehicle
for business. For information on certain travel that is
considered a business expense rather than commuting, see
the Instructions for Form 2106.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the right
amount of tax.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in
the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
Internal Revenue Code section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for individual taxpayers filing this form is included in the
estimates shown in the instructions for their individual income
tax return. The estimated burden for all other taxpayers who
file this form is approved under OMB control number
1545-1973 and is shown below.
Recordkeeping
45 min.
Learning about the law
or the form
4 min.
Preparing the form
35 min.
Copying, assembling,
and sending the form to the IRS
20 min.
If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. See the instructions for
the tax return with which this form is filed.

Optional Worksheet for Line 2 (keep a copy for your records)
a Deductible meals and entertainment (see the instructions for Schedule C, line 24b, on page C-7)

a

b

b

c

c

d

d

e

e

f

f

g Total. Add lines a through f. Enter here and on line 2

g
Schedule C-EZ (Form 1040) 2009
Printed on recycled paper