<div>On 1/8/08, Carl Root <<a href="mailto:carldroot@comcast.net">carldroot@comcast.net</a>> wrote: <blockquote class="gmail_quote" style="PADDING-LEFT: 1ex; MARGIN: 0px 0px 0px 0.8ex; BORDER-LEFT: #ccc 1px solid"> On Jan 8, 2008, at 5:32 PM, Israel Stein wrote: > on 1/8/08 Michael Magness wrote > >> I also believe that anyone who works from their home and does >> their own taxes is waving a large flag >> at the IRS saying "PLEASE, COME AUDIT ME"! I'm not saying they >> couldn't stand up to the audit but who >> can spare the time? > >> Mike > > Funny, I haven't been audited in 30 years of self-employment while > doing my own taxes. I have checked several lists of  "red flags" > compiled by tax professionals, and the above is not one of them. > And I would think they would put it at the top of the list if it > were true... I agree. I have been audited.  They don't tell you why, but I know that wasn't the reason.  Trust me on this. > > One "red flag" that is cited over and over again is claiming a > "home office" deduction (which I have never done). I have from day one.  I cleaned up my office and shop in preparation for the audit, but she didn't even want to look at them.. "Of course you have an office and a shop", she said. > Another is claiming more deductions than is reasonable based on > your total income. I'm not sure there's a connection between "reasonable"  and income. For example, if you put an obscene amount of miles on your car but aren't particularly efficient in your scheduling, should they penalize you? It's all about documentation.  It's also much less about proving expenses, and more about accounting for every dollar you've deposited into your bank account. > There are others. And you are just as likely or unlikely to get > audited based on whatever criteria the IRS uses to pick their > "auditees" irrespective of who does your taxes (unless - of course > - they may be targeting certain professional tax preparers who tend > to push the envelope on deductions?) One advantage to using a good, > honest accountant is that they will be able to tell you when you > are about to create a real "red flag". And tax software does the > same - but I suspect an accountant might be more effective in this. > > The upshot of all this is - do whatever you are comfortable with. > Just if you are going to do your own taxes, make sure you are > capable of thoroughly reading and understanding the instructions. > And don't depend on what you knew from past years because - as some > people here correctly noted - the laws change from year to year. > What I quoted in my previous messages is based on the Tax Year 2007 > law. > > Israel Stein Forgive my digression, especially since this thread started on the assumption that there was no self employment income.  I've always assumed that any technician that owned a tuning hammer had a few clients on the side, but I could be wrong about that. Carl </blockquote></div> <div>I wasn't particularly writing for you old "pros" at doing your own taxes. I won't change your mind just as you won't change mine.</div> <div>I'm writing for the benefit of the younger folks reading along and not commenting. I feel, personally as do many others that we as professionals don't particularly care for amatuers stepping into our area of expertise. Why do we feel we have the knowledge and chutzpah to feel we can handle someone else's? </div> <div>I'm an OK shadetree mechanic but I still take my truck to a pro, why? Because he knows stuff I don't! Just as the tax guys do, and many other professionals, I use my time doing what I do well, earn my money at it and spend some of it paying them to assure the job is done right! </div> <div>Thats all I'm saying.</div> <div> </div> <div>Mike -- The secret to creativity is knowing how to hide your sources. Michael Magness Magness Piano Service 608-786-4404 <a href="http://www.IFixPianos.com">www.IFixPianos.com</a> email <a href="mailto:mike@ifixpianos.com">mike@ifixpianos.com</a> </div>