Originally Posted by
kokonutz
Yes, it amounts to a small reduction in taxes, but a big penalty if taken and it turns out in an audit that it is not an allowed deduction.
Why would it not be an allowed deduction if someone gets a receipt confirming tax deductibility? Also, many IRS penalties can be abated, especially if it can be shown that such deductions were taken in good faith. Not all adjustments during audits incur "big penalties."