In a year, P1 and P2 may receive let's say 5K in business bank bonus but we dont file business taxes because our business income is next to nothing. We do not receive any 1099's, we dont claim any business expenses etc. All of our income is reported on personal taxes including the business bank bonus we receive. Do you think this can look little odd in the eyes of IRS when they see business bonus but no business return is filed? or that is not their concern as long as you are reporting the income somewhere.
Posted by piano-2020
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If you’re running a business, you need to report the business correctly, even if your profits are small. You owe self-employment taxes on those profits, so it does make a difference even if you’re currently reporting your profits as income in other ways.