Well, I'm thinking that if you are reporting all your gigs and using all deductions such as meals, gas, equipment, phone, depreciation, etc, etc, there is no problem and will result in decent refunds, especially if you or your tax preparer knows all the loopholes that are in place.

On the other hand, I know of a duo, a husband and wife, that was not reporting everything and they were caught by the IRS and fined by simply watching advertising in newspapers. How can you escape that one?