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... One "red flag" that is cited over and over again is claiming a "home office" deduction (which I have never done). Another is claiming more deductions than is reasonable based on your total income. 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
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