The Internal Revenue Service has launched a review of the tax-exempt status of a widely-held form of mortgage-backed securities called REMICs.

The IRS confirmed to Reuters that the review comes in response to mounting evidence that banks violated tax requirements by mishandling the transfer of mortgages to REMICs, short for Real Estate Mortgage Conduits.

The following business deductions on Form 1040 Schedule C must be thoroughly documented especially the "expenses for business use of a home (Line 30)" claimed with additional Form 8829, "car and truck expenses (Line 9)" and "depreciation (Line 13)", "travel, meals and entertainment (Line 24)".

You must keep a diary of travel expenses, appointments in a calendar to be able to answer "yes" to the two questions on Schedule C. "Do you have evidence to support your deduction?" (Y) and "If 'yes,' is the evidence written?" (Y). These records must be kept and updated within 24 hours of travel.