6. Reporting too many losses on a Schedule C

This is directly connected to self-employment. If you have your own business, you may think it’s a good idea to report only some parts of your income. A lot of people hide their income by filing personal expenses as business expenses. If you are doing this, you may want to reconsider because the IRS will be suspicious about it.

If you report that you have more losses than actual earnings, they will definitely ask you how your business is still active in the market.

Be an honest person!