Tax evasion can include filing a business tax form where you do not qualify to do such. Most horse farms do not qualify, and because they are such big tax havens, they are prime targets for enforcement. My and my friend both operate LLC businesses in KY based on horses. I shut mine down two years ago, and my friend is closing his this tax year due to no prospect of turning a profit due to the economy. Both of our separate tax aides made the recommendation based on our situations, and their experience as equine-friendly accountants.
You are very right, you and only you are responsible for your taxes. If you decide to file this way, you stand to reap the benefits. Or, the punishment. Its your risk to take
My recommendation is if you can't ever show profit, and have six years with no profit, its time to close the business as a financial entity and file as a hobby farm. You aren't penalized for closing a business, even if its 6/7 years with no profit. You showed intent, and failure, and took action to stop it.
Of course they give you the benefit of the doubt. That's why you're given five years of failure before they start to get suspicious. If you can't show a profit in 5-7 years (even a few dollars), you obviously don't have a very healthy business
You're a hobby farm. Suck it up, bite the bullet, and pay your taxes. You don't pay back taxes, you just start that year.
As far as "one vet bill knocking you into the red" that's exactly right, its not hard at all to have a loss. But since when do you get to write off pet injuries? You don't. You can write off livestock losses, but not dog vet bills, or horse vet bills. So I have little sympathy if you have constant red years due to vet bills and vet bills alone. Again, you aren't a commercial farm. You're a hobby farm. Suck it up, bite the bullet, and pay your taxes.
