Legacy Tax & Resolution Services

High-Risk Tax Audit Areas Related to the Home Office Tax Deductions

Check out the other audit risks

Income Risk    Large Itemized Deductions     Unreported Income

Rental Income           Self-Employment          Home Office

Unreported Alimony     Automobile Expenses

 

High-Risk Tax Audit Areas Related to the Home Office Tax Deductions

High DIF

IRS computers compare all tax returns to the national Discriminate Information Function (DIF) system average. The IRS calculates the DIF score by using a closely-guarded formula. Tax returns with the highest DIF scores are scrutinized by experienced IRS examining officers who determine which tax returns provide the best chance for collecting additional taxes, interest, and tax penalties.

Home office tax deductions have been targeted by the IRS. Since the tax rules for deducting home office expenses on your tax return are complicated, you should consult a tax expert, such as a CPA, to determine whether you qualify to deduct home office expenses on your tax return.

Defend Yourself!

You are entitled to take every tax deduction that you qualify for and you should never be scared by the potential of an IRS tax audit. You must use common sense when making decisions about deductions and hire a qualified CPA to help you through the minefield of taxes

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