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Old 10-19-2015, 04:19 PM
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Non-Annual Seasonal Employment

I have a primary, full time job as an employee with a regular place of employment. I also have a second, seasonal job as a self-employed independent contractor.

My second job is as an amateur sports official. This job is not only seasonal in that it occurs only a few months out of the year, but it is also intermittent and non-annual. There are some years in which my services are not needed at all, and thus I have no self-employment income or expenses. I would like to know if there are any issues or special circumstances that would arise from this type of employment.

Here are a few questions relating to this second, seasonal job:

#1 -- Do I need to file anything with the IRS relating to my second job for years in which I have no income or expenses?

#2 --In the years when my officiating services are needed and I have received income, I have always turned a net profit. In the years when I have not worked as an official, my net profit is zero. I don't have any kind of business-related expenses that would occur in years in which I don't receive any income. Am I in danger of having my job as an official classified as a "hobby" by the IRS due to the intermittent nature of the work and the years where I have a zero net profit?



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Old 10-19-2015, 11:44 PM
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Join Date: Oct 2010
Posts: 5,224
I have a primary, full time job as an employee with a regular place of employment. I also have a second, seasonal job as a self-employed independent contractor.

My second job is as an amateur sports official. This job is not only seasonal in that it occurs only a few months out of the year, but it is also intermittent and non-annual. There are some years in which my services are not needed at all, and thus I have no self-employment income or expenses. I would like to know if there are any issues or special circumstances that would arise from this type of employment.

Here are a few questions relating to this second, seasonal job:

#1 -- Do I need to file anything with the IRS relating to my second job for years in which I have no income or expenses?========>Not really UNLESS the amt reported on SCh C of 1040 line 29 / 31 is $400 or exceeds $400, you do not need to files return and do not need to pay self employment tax on Sch SE of 1040, so ,No.

#2 --In the years when my officiating services are needed and I have received income, I have always turned a net profit. In the years when I have not worked as an official, my net profit is zero. I don't have any kind of business-related expenses that would occur in years in which I don't receive any income. Am I in danger of having my job as an official classified as a "hobby" by the IRS due to the intermittent nature of the work and the years where I have a zero net profit?======.I guess it depends;ther is no specific and technical decision made by the IRS on which biz is hobby or not. One popular test for determining profit motive is called the 3-of-5 test. If your business made a profit in any 3 out of the past 5 consecutive years, it is presumed to have a profit motive. This means that if you claim a loss for the third straight year after starting your business, you may be inviting an audit.but it is not conclusive Hobby businesses are usually run from home as renting an office would be too expensive and are often based on semi-recreational activities near and dear to the owner. You can use virtually any kind of evidence to show that you're trying to make money Your business cards, a well-maintained set of books, a separate business bank account, current business licenses and permits, and advertising or other marketing efforts will all help to persuade an IRS auditor that your activity really is a business. Many cities require every local biz to obtain a tax registration certificate. Technically, this rule applies to any money-making activity even if you don't intend to claim any federal or state tax deductions for your hobby business. Also, if you sell goods ,such as homemade jewelry, your sales will be subject to state sales taxes, which means you'll have to apply for a "seller's permit."
.
So, getting the necessary licenses and permits will help show the IRS that you really are running a biz for proft purposes, NOT as a hobby.



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