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Sole-Proprietorships Substantiation Issues

Course Price: N/A
CPE Credits
Advanced Preparation
None, but recommend NSTP's Webinar on Sole-Proprietorship Formation and Operation
Course Level
Knowledge of Federal Tax law
Paul La Monaca CPA, MST
Course Description
  • It discusses the reporting requirements for filing the Schedule C with IRS Form 1040 as well as what is an allowable deduction under the §162 Ordinary and Necessary business expense requirements.

  • It provides suggested Research Materials for preparing the Schedule C, including specific IRS Publications and Rulings as well as various Internal Revenue Code Sections.

  • It discusses why the Tax Professional should understand the audit issues surrounding the Schedule C and the easy "audit targets" that the IRS auditor is sure to be reviewing.

  • It gives the Tax Professional the general rules surrounding the deductibility of ordinary and necessary business expenses and the separate specific limitations of expenses that are limited or not deductible at all, under a different section of the law.

  • This course will provide specific data discussing the activities of a business versus a Hobby.

  • The course is important for determining the critical issue of "placed-in-service" dates for fixed assets being deductible and determining that they are deducted in the proper tax year.

  • In addition, the presentation provides the proper understanding of the issues related to the disposition of a fixed asset as to the proper period in which the remaining adjusted basis is allowed to be written off if discarded, as well as the §1245 recaptured depreciation when the fixed asset is sold in a taxable event or converted to personal use by the sole-proprietor.

  • The course is important in that it guides the Tax Professional in learning how to audit proof their clients' deductions, especially in the area of related party transactions.

  • IRS: Federal Tax Law Topics 1 CPE
  • CTEC: Tax Law 1 CPE
  • NASBA: Taxes 1 CPE
Learning Objectives

At the conclusion of this session, the Tax Professional will be able to better guide their Schedule C clients on how to properly substantiate their business expense deductions and recognize revenue in the proper tax year. In addition, they will be able to provide more knowledge on how to succeed in an IRS audit.


To receive the member price, first log into your member account. Your member discount will then be automatically applied. We can also take your registration by phone.

Your registration confirmation will be emailed to you when your payment is processed. During our busy season, this can take up to 2-3 business days after we receive your registration.

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Yes. If you have a PTIN on file with us, we will submit your hours. To insure we have your correct info, please provide your PTIN when you register for a course. Please notify us if you have recently submitted a name change request to the IRS.

Your certificate will be emailed to you within 10 business days of the completion of the course.

  • Once your registration confirmation is emailed, due to the proprietary materials and content of orders are NOT ELIGIBLE for refund, cancellation, or transfer to another NSTP course.
  • materials and presentations are intended to stimulate thought and discussion and to provide attendees useful ideas and guidance in the areas of federal taxation and administration. These materials as well as the comments of the instructors do not constitute and should not be treated as tax advice regarding the use of any tax procedure, tax planning technique, device or suggestion, or any of the tax consequences associated with them.
  • Although the NSTP has made every effort to ensure the accuracy of the materials and the seminar presentation, neither the author, the presenter nor the National Society of Tax Professionals assumes any responsibility for any individual’s reliance on the written or oral information presented during the presentation. Each attendee should verify independently all statements made in the materials, and during the seminar presentation, before applying them to a particular fact pattern and should determine independently the tax and other consequences of using any device, technique, or suggestion before recommending the same to a client or implementing the same on behalf of a client, or on the attendee’s own behalf.
  • materials & presentations are fully protected under copyright law. Any attempt to copy for resale, distribution, or use other than personal use for tax preparation will be fully prosecuted of the law.
Testing Policy
  • require a test for CPE. 3 attempts are allowed.
  • You have 1 (one) year from date of purchase to complete the course by taking the test.
More Information For more information regarding refund, cancellation, and complaint policies, please contact our offices at 1(800) 367-8130.