Yesterday Advocacy hosted a roundtable on important tax issues. Officials from the Internal Revenue Service made presentations on several topics, followed by Q&A from small business representatives. The topics discussed included the last-in, first-out (LIFO) accounting method, the revised Form 990 (which tax-exempt organizations have to file), and the home office business deduction. A representative from the IRS’s Taxpayer Advocate’s Office noted that 8.4 million small businesses operate out of the home, but only 2.7 million actually filed for the home office deduction because of the complexity of the IRS rules. Advocacy and members of Congress are closely monitoring this issue, and the home office business deduction is one of the r3 Top 10 rules in need of review and reform.
– Dillon Taylor, Assistant Chief Counsel