"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:

- quote -

in the instances where an IRS agent actually looked at the
home office did any not qualify? it seems easy enough to
rearrange furniture ahead of time to expand any office
space!

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"Brett" <no[at]spam.net> wrote:

- quote -

I have no idea what the IRS is doing along these lines
nowadays, but I can tell you that when I was an income tax
auditor for the California Franchise Tax Board in the late
1970's-early 1980's, I frequently performed field audits at
the taxpayer's residence, especially when a home office
deduction was an issue. Wouldn't surprise me if the IRS did
too.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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"Brett" <no[at]spam.net> wrote

- quote -

Yes, they have the right and responsibility as part of the
audit proceedure to inspect the business premesis. I
haven't seen them ever look at the computer programs.
Whether or not they actually go out and inspect the business
location is up to them. I would suspect if the dollars
claimed as "home office" are significant it is a "must do".
If you only claim a few hundred in "home office" then it
becomes a time-value issue.

- quote -

It is part of their job. Don't you want them to do their
job?

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Brett wrote:

- quote -

Well, they can do this, show up at house and want to see
home office to validate deductions. AT a reasonable hour,
which in their opinion means 8:30 to 4:30. Of course if
you have a primary job and are not able to accommodate
them.... what can they do?

As for snooping in your computer, that would be a "NO NO"
in my book. Invoke the privacy act, client privilege,
customer privacy, whatever. Ain't no way they're getting
into my computer.

Of course I don't have an office at home either.

ChEAr$,
Harlan Lunsford, EA n LA
Mon, 8 Nov 2004 20:29:12

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"Brett" <no[at]spam.net> wrote:

- quote -

I have never heard of this. But if an auditor came to my
door, I would hand him/her a copy of my 2848. He/she
needs to speak with my accountant first.

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Brett wrote:

- quote -

It can happen that an IRS agent comes to your home. As far
as perusing your computer, I believe that such is going too
far (why not have TWO computers - one business and one
personal use?). I believe that the authority granted to
them in the IRC is limited to the "plain view" rules.

In one audit I co-handled 12 years ago (the taxpayer was
deceased, so the executor and estate attorney also showed
up), we actually INVITED the IRS agent to the house to
demonstrate the business use (a percentage higher than 20%
was claimed) - and we were successful on that point. That
usage was not just a "home office" but also the storage of
business inventory (thus the higher than average
percentage).

In all of the cases during my IRS employment where I did a
calling at the taxpayer's home, one could usually tell just
by LOOKING at the area whether or not the home office (or
inventory storage) qualified. I probably had many more
cases where the claimed home office was never seen (i.e. not
sufficiently material to the overall tax).

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"Brett" <no[at]spam.net> wrote:

- quote -

If your Home Office deduction is legitimate, and you have
followed the rules for regular use and exclusivity, you
shouldn't have any problem with them checking up on you.
Home-based businesses and home office deductions are a
widely abused area of tax law, so it shouldn't come as any
surprise that this area would be checked.

Since you are asking the question, perhaps you have
something to hide? An honest taxpayer shouldn't have to
worry about an audit.

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"Brett" <no[at]spam.net> wrote:

- quote -

This is highly unlikely unless you have caused IRS to be
suspicious about things that have gone on in your house.
Just because you have a business operated from your home,
they will not do it. I have operated my business from my
home since 1980 and nothing like that has happened to me and
my family. It sounds like to me someone is just trying to
scare you. Operate your business and I hope you make a ton
of money from it as long as it is a legal business.

Wayne Brasch, CPA, M. S. Taxation

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This topic is related to deducting items for a home based
business. This one person told me the IRS will show up at
your house in some cases for an audit. They'll go as for as
to look at files on your computer to make sure everything is
being used as a business. Is any of this true? Under which
conditions may this occur?

It's difficult to imagine them going to such an extent for
single person home based business.

Thanks,
Brett

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