Are you saving your rejection letters? Even after getting such disappointing correspondence, STOP! Don't crumple it up and throw it away! This letter might have value.
IF the I.R.S. ever questions whether your business is a "hobby" or a "business" . . . these letters demonstrate and verify from third parties that you are diligently pursuing your professional efforts to market your art and craft work. This is only one step in keeping good records and improving your business practices.
So after shaking your head over the news, stuff that letter where it belongs. Then get back to work and keep your focus on what is important.
Stay tuned for an ongoing series about other ways you can prove to the I.R.S. that you are a business instead of a hobby.