The law sounds really draconian, however keep in mind that the governments wants there share of the money (plus your first born, a kidney and some blood). E.g i

The law sounds really draconian, however keep in mind that the governments wants there share of the money (plus your first born, a kidney and some blood). E.g if a person is an employee but is classified as contractors they can deduct their home office, travel to and from the office, clothing, going out for lunch, anything you buy computer related. The government comes up with some rules that determines if you are an employee or contractor. If the government decides that you should have been an employee they get all pissy since they perceive that you are trying to screw them out of money.