Hal_Al
Level 15

Deductions & credits

I agree with VolvoGirl; you need to amend your return, deleting the form 2106 and adding the expenses to her Schedule C. 

Send the amended return to the IRS address on the letter, along with a copy of the letter and your explanation.

 

But, be prepared for further IRS push-back.  Writing off computers and European trips, for conferences,  are subject to questioning