Creative Business Solutions

[redacted] [redacted] *** [redacted] Ms [redacted] came to Creative Business Solutions on 6/14/to process her personal tax returnMs [redacted] has a small cleaning business and the activity is filed on a Schedule C on her personal tax returnShe had no DBA or assumed named filed with the county and no EINOur recommendation in was to get an assumed name before and open a business bank account and run all her activity through the business bank accountThe Personal tax return was filed and she received a small refund around $2K due to Earned Income Credit.On April 3rd Ms [redacted] came to Creative Business Solutions to file her personal tax return exactly like we did in She DID NOT get an assumed name DID NOT get a business bank accountOn April th her tax return was accepted by the IRS and was due a refund of about $2K due to Earned income Credit.On June 29' the IRS examined MsEspinoza's tax return and denied the Schedule C income and expenses stating that the activity in her "business" was classified as hobby and not as business activity, therefore denying her of her Earned Income Credit since she had no other incomeSince she had no Earned Income and the profit she had was classified as Hobby she owed no Income Tax but wasn't getting a refund.On August 171h Creative Business Solution disputed the Business to Hobby conversion (even though Ms [redacted] still did not get a DBA/Assumed name Certificate)The IRS responded by the validity of the dependentsAfter additional information was gathered and letters were prepared to the IRS, the IRS reversed the conversion but denied the Earned Income Credit.Creative Business Solutions has done all of this for $We also have copies of all the IRS notices and correspondence going back and forthCreative Business Solutions is NOT an official representative of Ms [redacted] so all the correspondence is addressed to Ms [redacted] and the only way we could have this documentation is when Ms [redacted] brought it to us and requested assistanceWe did this work because she was a friend of a client and she did not make a lot of moneySo we did not charge her our standard billing rate as a favor for a friend.Ms [redacted] finally got her DBA on Oct 22" and she gave us a copy ofWe hope this will shed some light on what actually happened and consider this matter closedIf you have any questions or need supporting documents, we would gladly furnish with Ms [redacted] permissionFYI on Feb 23'd Ms [redacted] has contacted Creative Business to schedule some time for us to do the tax returnWhich we will kindly deny

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[redacted]Ms. [redacted] came to Creative Business Solutions on 6/14/14 to process her 2013 personal tax return. Ms [redacted] has a small cleaning business and the...

activity is filed on a Schedule C on her personal tax return. She had no DBA or assumed named filed with the county and no EIN. Our recommendation in 2014 was to get an assumed name before 2015 and open a business bank account and run all her activity through the business bank account. The 2013 Personal tax return was filed and she received a small refund around $2K due to Earned Income Credit.On April 3rd 2015 Ms. [redacted] came to Creative Business Solutions to file her 2014 personal tax return exactly like we did in 2013. She DID NOT get an assumed name DID NOT get a business bank account. On April 28 th 2015 her tax return was accepted by the IRS and was due a refund of about $2K due to Earned income Credit.On June 29' 2015 the IRS examined Ms. Espinoza's tax return and denied the Schedule C income and expenses stating that the activity in her "business" was classified as hobby and not as business activity, therefore denying her of her Earned Income Credit since she had no other income. Since she had no Earned Income and the profit she had was classified as Hobby she owed no Income Tax but wasn't getting a refund.On August 171h 2015 Creative Business Solution disputed the Business to Hobby conversion (even though Ms. [redacted] still did not get a DBA/Assumed name Certificate). The IRS responded by the validity of the dependents. After additional information was gathered and letters were prepared to the IRS, the IRS reversed the conversion but denied the Earned Income Credit.Creative Business Solutions has done all of this for $290.00. We also have copies of all the IRS notices and correspondence going back and forth. Creative Business Solutions is NOT an official representative of Ms. [redacted] so all the correspondence is addressed to Ms. [redacted] and the only way we could have this documentation is when Ms. [redacted] brought it to us and requested assistance. We did this work because she was a friend of a client and she did not make a lot of money. So we did not charge her our standard billing rate as a favor for a friend.Ms. [redacted] finally got her DBA on Oct 22" 2015 and she gave us a copy of. We hope this will shed some light on what actually happened and consider this matter closed. If you have any questions or need supporting documents, we would gladly furnish with Ms. [redacted] permission. FYI on Feb 23'd 2016 Ms. [redacted] has contacted Creative Business to schedule some time for us to do the 2015 tax return. Which we will kindly deny.

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[redacted]Ms. [redacted] came to Creative Business Solutions on 6/14/14 to process her 2013 personal tax return. Ms [redacted] has a small cleaning business and the activity...

is filed on a Schedule C on her personal tax return. She had no DBA or assumed named filed with the county and no EIN. Our recommendation in 2014 was to get an assumed name before 2015 and open a business bank account and run all her activity through the business bank account. The 2013 Personal tax return was filed and she received a small refund around $2K due to Earned Income Credit.On April 3rd 2015 Ms. [redacted] came to Creative Business Solutions to file her 2014 personal tax return exactly like we did in 2013. She DID NOT get an assumed name DID NOT get a business bank account. On April 28 th 2015 her tax return was accepted by the IRS and was due a refund of about $2K due to Earned income Credit.On June 29' 2015 the IRS examined Ms. Espinoza's tax return and denied the Schedule C income and expenses stating that the activity in her "business" was classified as hobby and not as business activity, therefore denying her of her Earned Income Credit since she had no other income. Since she had no Earned Income and the profit she had was classified as Hobby she owed no Income Tax but wasn't getting a refund.On August 171h 2015 Creative Business Solution disputed the Business to Hobby conversion (even though Ms. [redacted] still did not get a DBA/Assumed name Certificate). The IRS responded by the validity of the dependents. After additional information was gathered and letters were prepared to the IRS, the IRS reversed the conversion but denied the Earned Income Credit.Creative Business Solutions has done all of this for $290.00. We also have copies of all the IRS notices and correspondence going back and forth. Creative Business Solutions is NOT an official representative of Ms. [redacted] so all the correspondence is addressed to Ms. [redacted] and the only way we could have this documentation is when Ms. [redacted] brought it to us and requested assistance. We did this work because she was a friend of a client and she did not make a lot of money. So we did not charge her our standard billing rate as a favor for a friend.Ms. [redacted] finally got her DBA on Oct 22" 2015 and she gave us a copy of. We hope this will shed some light on what actually happened and consider this matter closed. If you have any questions or need supporting documents, we would gladly furnish with Ms. [redacted] permission. FYI on Feb 23'd 2016 Ms. [redacted] has contacted Creative Business to schedule some time for us to do the 2015 tax return. Which we will kindly deny.