Business News Time spent on the Internet can count in the Time-space percentage. IRS Correspondence Letter from the IRS to former Senator Rudy Boschwitz that says providers can count the hours spent cooking, cleaning and preparing activities as part of the time-space percentage. IRS Audit Audit IRS audit in Minnesota on exclusive use of a room when a provider's own child was in the room during day care hours. Provider wins case. IRS Audit Minnesota IRS auditor says provider can't claim hours worked on Saturday doing record keeping because her business was not open that day.
Case is won.
IRS Audit Minnesota IRS auditor denies many of the hours a provider worked on activities such as record keeping, meal preparation and cleaning. On appeal the provider wins. IRS Audit Minnesota IRS auditor denies provider's deduction for an exclusive use of a room. After showing photos and a video, provider wins case on appeal. Tax Court Case Tax Court case Uphus and Walker dealt with basement and garage spaces that are not occupied by day care children.