The corporation filed its 2006 State and Federal tax returns on September 13, 2007 and the couple filed their personal tax return on October 14, 2007. The corporation reported a combined loss for tax purposes of $11,660, which was naturally used to offset income from other sources on the family’s personal return. All deductions taken on the business and personal tax returns fall within the guidelines of generally accepted accounting principles. To date, the IRS has not pursued an audit of either return.