Deducting the Home Office - Review your return...
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6. Review your return before you sign it and ask questions on entries you don't understand.
7. Find out the personís credentials. Only attorneys, CPAs and enrolled
agents can represent taxpayers before the IRS in all matters including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
8. Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources, and holds
them to a code of ethics.
9. Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received? Take up references if you have no personal connection.
Tax evasion is a risky crime, a felony, punishable by five years imprisonment and
a $250,000 fine. Incarceration may include prison time, home confinement,
electronic monitoring or a combination.
Is it wrong to deduct costs associated with home based businesses?
The law allows individuals to claim legitimate business expenses. In order to be
deductible, expenses must be ordinary and necessary expenses paid and
incurred in carrying on a legitimate trade or business. A business must truly exist
prior to claiming business related expenses. Legitimate deductions may be
limited and could have a number of qualifiers or categories. Always seek
assistance from qualified and legitimate tax professionals before claiming these
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