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Video instructions and help with filling out and completing Fill Form 1094 B Import

Instructions and Help about Fill Form 1094 B Import

Hello everyone! I'm Steve Rebel with Shriek My Taxes, here to bring you another quick tax topic video. A lot of people are afraid of IRS audits. Some people are so afraid, in fact, that they won't take a legitimate deduction on their tax return because they don't want to raise any red flags. One of the top ten red flags is the home office deduction. So today, I thought we'd spend some time walking you through what you need to know in order to take this deduction the right way. Let's begin by finding out what you're up against. What are the chances of you facing an IRS audit? Well, according to the most recent data, about 1.1 percent of all tax returns ended up getting audited last year. That comes out to about one out of every 90 tax returns. If your income increases, your chances of getting audited also increase. About twelve and a half percent of taxpayers with incomes over a million dollars ended up getting audited. Four percent of taxpayers with incomes between 200,000 and a million dollars ended up receiving an IRS audit, while just over one percent of taxpayers with incomes under 200,000 ended up getting an IRS audit. Business returns actually have an even lower chance, under one percent. Only 0.63 percent of all business returns got an IRS audit for tax year 2010. Now, what happens if you lose an audit? If the IRS disallows the deduction, you're gonna get hit with not only the taxes due, but also penalties and interest. And that's not fun. So let's look at the home office deduction and how you can do this the right way. This data is gonna come out of IRS publication 587 if you want to look that up. In order to...