Sole proprietors, self-employed individuals, and one-member limited liability companies that don’t elect to be taxed as a corporation file Schedule C with their Form 1040 or 1040-SR. Farmers filed Schedule F. A recent report found that only 1.03% of Schedules C and F filers with income between $200,000 and $1 million were audited by the IRS in 2022. This compares with the 0.49% audit rate for those in the same income range but without business income. #IdeaoftheDay