Starting in 2011, all US payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. We want to help you understand these changes.

•   Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments
•   Applies only for sales on or after January 1, 2011

It seems that we have come full circle with the home office write-offs as an audit flag.  When I started my business out of my home in 1995, the IRS did not view this as a normal business deduction.  During the late 90's, Y2K, and as late as 2008, it was viewed as a common buisness deduction. 

Well like everything else, the recent turn of events with our economy, things have changed!  If you are planning to take advantage of a home office deduction on your taxes, keep this phrase in mind....."...

I just finished the second busiest tax season of the year.  It surprises me that tax filers think that by filing an extension, they will not incur late fines and penalties.  REMEMBER, an extension is a promise to file later, but does not give you a free pass on paying your taxes in the year they were incurred.