Taxes are full of crazy rumors. High employee business expenses with moderate income are a really big big target on your back. To make matters worse the IRS has been doing a lot more of these types of audits. I believe that a lot of IRS employees used to process returns, with electronic filing not so many returns to process. These workers have gone from clerk typist to auditors and the results are not good for taxpayers. I’m advising my clients who have these expenses to either get a reimbursement plan or make sure they can document every expense they claim. I think going forward there will be so many of these audits there’s no upside to “fudging the numbers” in this area.