Nelson,
I have made a number of errors on my taxes over the years and I was never threatened, or had my bank accounts seized. I simply got a letter pointing out what the IRS believed was an error. If I agree that it was an error and was not contesting their adjustment to my taxes, I just signed the form and sent it back.
For a number of years I claimed a home office which is typically a big red flag for the IRS, and I never heard any objections from them nor did they ever question any deduction on my 1040A.
People do not get audited just because they claim a deduction that they may be entitled to. If the amounts are unreasonable based on the average tax payer with the same Gross Income, that may signal them to look at the 1040 form a little closer.
I have also had relatives that worked for the IRS and my neighbor across the steet retired from the IRS a couple of years ago and both have answered many questions for me over the years. I might add that it's a proven fact that the worst tax advise you can get is from the IRS. Statitics indicate that the answer you get will be wrong more than 60% of the time.
My statement about the "Tax payer's right to take any deduction they believe they are intitled to" is not my quote, but was a quote by the author of one of the most reliable guides to filing Federal Income Taxes.
While we do hear of the occassional incidents where the IRS seized someones bank account because of back taxes or fraud. It usuall makes the news because it was the wrong persons account or they seized the taxpayer's 10 year old sons bank account with $42 in it.
Simply stated, the IRS will not and can not seize your bank accounts or assets simply because you claimed a deduction that you felt you were intitled to. People who have their assets seized by the IRS have been shown to have committed fraud, or other criminal activities, or have already owe the IRS a great deal of money and will not pay or refuse to make or follow any payment arrangements.
...Rich
