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Beetlejuice! Beetlejuice! Beetlejuice!
Seriously, Rochard, one of the issues is that 2257 is a record inspection procedure, not a court ordered "search and seizure". It isn't any different from an inspector coming into a restaurant looking for the latest roach spray stickers, the duct cleaning notice, and the city business permit. The law clearly spells out the process, and in fact requires Americans and american based businesses to specifically list a records inspection location.
Essentially, the law itself is your notice of intent to inspect (or search) your records, and they reserve the right under the law to exercise their rights at any time.
Erowebmaster, your idea for a hole in the wall is correct, except that you have to maintain regular office hours in that hole in the wall to be legal. You cannot have an empty office or unattended location as your records office. There is still much debate about the location of a records office, as many of the major porn companies use their lawyers office as the records location. The new 2257 apparently makes that less of an option, from what I can gather.
All law enforcement agents can take notice of anything they can see in plain view, and either react to it immediately or use those observations as the basis of a true search warrant in the future. It is one of the hazards of operating from home, your private and public lives get mixed together, and it can get a little messy. An external office is a really good idea, but you have to attend and that isn't always easy.
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