The following list of questions provide general guidance in gathering information
to determine the existence of a trade or business. Adapt the questions to fit the
situation.
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Has IRS issued a ruling to the individual regarding the existence of a trade or business?
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What documents has the individual executed? (e.g., SS-4, tax reports or returns, .
. . etc.)
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Why does the individual feel the activities constitute a trade or business?
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Associating with other individuals? In what capacity? (i.e. partner, helper etc.)
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What business firms or other organizations did the individual deal with?
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How was income reported on tax return?
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Business licenses, permits, registrations?
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Indications of availability to others for transacting business?
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Member of business or trade association?
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Other pertinent information?