Extreme makeover, home edition — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Home office deductions may undergo a makeover in the near future. The IRS is working on a simplified method for computing write-offs. Currently, deductions depend on the percentage of the home’s area used for business.(Alternatively, the percentage may be based on the number of rooms.) One idea the IRS is considering would be to set a standard dollar amount that reflects the square footage used for business. That concept is still in the planning stages, so don’t expect any change for 2006 returns.
If you handle payroll compliance, beware: As other tax revenue sources dry up, the IRS is hiring 700 new revenue agents whose only job will be to hunt down payroll-law violations. That means intense new scrutiny of your W-2s, 1099s, 1095s and other payroll tax reporting compliance....Click here to find out more.