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Self-Study Courses

The Schedule C Hobby Loss Exam (Currently Unavailable)

2 CPE Credits $31.00/credit hour
★ ★ ★ ★ ☆ 4.8 (10 ratings)
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

We all handle IRS exams, but what do you do when the IRS believes your client’s “business” is not a business at all? This program will review the Hobby Loss rules under IRC 183 and what practitioners should do before and during the exam to help save those claimed losses.

Publication Date: August 2021

Topics Covered

  • Exam Notice
  • Case Study
  • Ethical Concerns
  • First Steps for Preparing for the Exam
  • The Client Interview and the Business Tour
  • Section 183—The Hobby Loss Rules
  • Appeals

Learning Objectives

  • Identify hobby loss rules
  • Recognize how to explain the nine factors the IRS uses to determine if an activity is a business or hobby
  • Identify things the practitioner can do with clients to bolster their case that the activity is not a hobby
  • Recognize who bears the burden of proving the taxpayer engaged in the activity with an actual and honest objective of realizing a profit
  • Identify which IRC limits deductions to the income generated by a hobby
  • Recognize what is not one of the nine relevant factors the IRS will look to regarding the hobby vs. business determination
  • Describe how many days before trial a qualified offer is available anytime from appeals, based on IRC §7430

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Instructor

Eric L Green

Eric is a partner in Green & Sklarz LLC, a boutique tax firm with offices in Connecticut and New York. The focus of Attorney Eric L. Green’s practice is civil and criminal taxpayer representation. Eric is a past chair of the Connecticut Tax Bar and is a Fellow of the American College of Tax Counsel. He is a frequent lecturer on tax topics for national organizations, and is the author of The Accountant’s Guides to IRS Collection and Tax Resolution. He was the creator and lecturer of the CCH IRS Representation Certificate Program, and Eric runs Tax Rep LLC, which coaches CPAs, EAs and attorneys to represent taxpayers. Eric was previously a columnist for CCH’s Journal of Practice & Procedure, and has the weekly Tax Rep Network podcast.
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