I had a small business a couple years ago, I was a hot food vendor at a farmers market. I started the business in late 2016 and only worked one day. I did however write off all my equipment (under $10k) for the 2016 tax year. The one day I worked in 2016 could’ve only had at most $140 in sales.
I did the market vendor one day a week (if weather was good) for a few months in 2017 but eventually gave up because I was taking too many losses for overhead and not making profit.
Anyway fast forward to now, I received a letter in the mail from the IRS and I look back at my TurboTax for 2016 & 2017 and do not see any sales listed, I only see my deductions for equipment purchased etc.. I also cannot log into the California Board of Equalization site to get any historical data. So it looks like I didn’t claim any sales. When I look back at our data from Square app (which we started using after the first month) it shows under $1,700 in sales.
Any suggestions on how to proceed, can I just dissolve the llc, do I need to pay the FTB? Any input is appreciated.
I cannot attach the image but form (FTB 765) reads:
**Payment Received – Missing Tax Return**