What it is
A sole proprietor’s return depends on records the client keeps all year. The organizer asks for the totals and for the support behind them, so the preparer can test income against the bank deposits.
It covers receipts, information returns, a full expense list, assets bought or sold, the home office, health insurance, retirement contributions and payments to contractors.
When to use it
- Self-employed and gig clients at the start of the season.
- When a client starts or closes a business.
- When a client’s Form 1099-K does not match its books.
What’s inside
- Income with Form 1099-NEC, 1099-K and 1099-MISC lines and a deposit tie-out question
- Expense list that follows Schedule C
- Asset purchases and disposals with business use percent
- Home office, health insurance, retirement plan and contractor questions
Standard cited
This template follows Schedule C. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Why compare deposits to income?
Platform reports and deposits can include sales tax, refunds, transfers and personal funds. The tie-out question makes the client explain the difference.
Do I need Form W-9 for contractors?
Collect it before the first payment. The Form W-9 procedure in this library explains the steps and backup withholding.
Is the contractor reporting threshold shown?
The organizer uses a placeholder, because the threshold depends on the year. For payments made after December 31, 2025 the IRS states it is $2,000.
Related templates
- Form 1099-NEC and 1099-MISC Payee Schedule
- Individual Tax Organizer: Employee and Investor
- Individual Estimated Tax Calculator Workbook (Excel)
- Worker Classification Worksheet: Employee or Contractor
Last updated 11/06/2026. All free templates.