government officials , and ( 4 ) employees with impairment-related work expenses . Unless they also fit within one of these categories , employees of law firms and other businesses can no longer claim unreimbursed business expenses related to their work .
What is some need to know information concerning recordkeeping ?
Whether your home qualifies as a home office or not , you must keep records sufficient to provide information to justify the deductions you claim . In most cases , records should be kept for the later of three years from the return due date or the date it was actually filed and the tax paid . If you have substantially underreported income , the lookback period is six years . There is no period of limitations to assess tax if a fraudulent return is filed or no return is filed . 11
Because the decision to open an investigation into a particular tax year is made by the IRS , I maintain all returns and documentation for six years . If you amend your return , begin counting from the time the amendment was filed and any additional tax was paid .
What about other tax effects ?
Legislation such as the Coronavirus Aid , Relief , and Economic Security Act ( CARES Act ) and the Paycheck Protection Program Flexibility Act impacts lawyers and their clients . It would take multiple articles to include all provisions that have had a tax effect , so consult a lawyer or other tax professional .
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1
Sections 199A , 161 , 162 , and 280A all bear on this determination .
2
There are separate requirements for storage of inventory , rental use , and use as a daycare facility , but those are not the areas in which most lawyers are interested . 3See IRS Publication 587 , “ Business Use of Your Home ” ( 2020 ), p . 3 . ⁴Code § 280A ( c )( 1 )( A ).
⁵See Publication 587 , p . 3 . ⁶If you are a partner or you use your home in your farming business , you file Schedule F to Form 1040 . The IRS provides a worksheet to assist you in figuring the deduction . If you use your home in a trade or business and you file Schedule C ( Form 1040 ), use Form 8829 to figure the deduction . ⁷See IRS Publication 530 on deducting real estate taxes , Publication 936 on home mortgage interest and mortgage insurance , and Publication 547 , “ Casualties , Disasters , and Thefts .” ⁸See IRS Publication 587 , p . 10 .
9
IRS Notice 2018-42 .
10
Code § 67 ( g ).
11
Code § 6501 .
IN THE PROFESSION
KATHERINE " KITTY " COHEN Eversheds Sutherland , LLP Kittycohen @ eversheds-sutherland . com
www . atlantabar . org THE ATLANTA LAWYER 15