They have no way of knowing what all your business expenses are (especially ones that don't require sending the recipient one of the various Form 1099s). They can look at what you claim as business expenses and retroactively require you to show proof of those expenses (i.e., audit you) if they seem unreasonable, but that's an entirely different thing.
They have no way of knowing what all your business expenses are (especially ones that don't require sending the recipient one of the various Form 1099s). They can look at what you claim as business expenses and retroactively require you to show proof of those expenses (i.e., audit you) if they seem unreasonable, but that's an entirely different thing.