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IRS Audit..!
What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. My nerves are shot. I don't keep very good records. And the more I've been researching, the more I'm finding things I could have been deducting and things I deducted incorrectly. I just don't see how the same government that awards no bid contracts to Chaney's 'former' company can ask it's citizenry to be enthusiastic about paying taxes. ... We all know how corrupt the system is including the IRS. "Who are you going to believe, me or your lying eyes?" -Groucho Marx |
IRS Audit..!
N O wrote in message ... What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. My nerves are shot. I don't keep very good records. And the more I've been researching, the more I'm finding things I could have been deducting and things I deducted incorrectly. I just don't see how the same government that awards no bid contracts to Chaney's 'former' company can ask it's citizenry to be enthusiastic about paying taxes. ... We all know how corrupt the system is including the IRS. "Who are you going to believe, me or your lying eyes?" -Groucho Marx Personally, I wouldn't go to their office. They get paid for their time and travel to come to yours, you don't. I really don't understand "I don't keep good records." If you are based from home, good records are essential. Surely, you have a tax man or accountant to tell you what deductions are allowed etc.? At any rate, I feel for you. Good luck with it. Cheri |
IRS Audit..!
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IRS Audit..!
How do you break 100k without good record keeping?
Forget researching, use your, (or get a) CPA but quick. Oh, and regarding the no bid contracts: Never expect anything logical from the gub'mint. gl with the audit. jc "N O" wrote in message ... What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. My nerves are shot. I don't keep very good records. And the more I've been researching, the more I'm finding things I could have been deducting and things I deducted incorrectly. I just don't see how the same government that awards no bid contracts to Chaney's 'former' company can ask it's citizenry to be enthusiastic about paying taxes. ... We all know how corrupt the system is including the IRS. "Who are you going to believe, me or your lying eyes?" -Groucho Marx |
IRS Audit..!
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IRS Audit..!
In article , (N O) wrote:
What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. Sounds like you took a home-office deduction. Bad idea. As my CPA put it... "they get a hard on the second they see a home office deduction". Well, unless you home office is a completely separate room with no "personal" stuff in it at all, I suggest you meet at their offices, if you can ;-) You'll also have some time if they ask for a document that you forgot to bring with you. Otherwise, you may have to reorganize your home a little to comply with the applicable rules on home offices. Consider consulting with a CPA or tax consultant. Find all of the documents that you can which support the income and expenses you have declared on your '06 return. If your documents support the first 5 things they ask about, it will buy you a lot of credibility on the remainder. They might even terminate the audit at that point. -- |~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~| | Malcolm Hoar "The more I practice, the luckier I get". | | Gary Player. | | http://www.malch.com/ Shpx gur PQN. | ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ |
IRS Audit..!
"N O" wrote in message ... What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. My nerves are shot. I don't keep very good records. And the more I've been researching, the more I'm finding things I could have been deducting and things I deducted incorrectly. The audit should take place at your accountant's office. Don't have one? Get one. If you are honest and made a couple of simple errors, no big deal. File an amended return and pay a small penalty. If you are attempting out and out fraud, it is a big deal. Our tax laws suck, big time. Good accountants don't cost you anything, they save you money. Get one. No different that paying a plumber or auto mechanic, they specialize. |
IRS Audit..!
On Mar 6, 8:23*pm, (N O) wrote:
What a time to get this piece of mail. Any advice on *how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My *business *broke 100k in '06 and apparently that substantially raises your odds of being audited.. My nerves are shot. I don't keep very good records. And the more I've been researching, the more I'm finding things I could have been deducting and things I deducted incorrectly. I just don't see how the same government that awards no bid contracts to Chaney's 'former' company can ask it's citizenry to be enthusiastic about paying taxes. ... We all know how corrupt the system is including the IRS. "Who are you going to believe, me or your lying eyes?" -Groucho Marx Now I'll have to pay for this So you've already assumed you've lost? Hmmm...did we do something wrong and finally get caught? AND come up with the money for 07 soon. So you haven't been paying your 07 taxes all along? I don't keep very good records. Snicker snicker...Good Luck! We all know how corrupt the system is What system is that? including the IRS. Make sure you bring that up at your meeting. That oughta get you some good-will points. |
IRS Audit..!
N O wrote:
What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. My nerves are shot. I don't keep very good records. And the more I've been researching, the more I'm finding things I could have been deducting and things I deducted incorrectly. I just don't see how the same government that awards no bid contracts to Chaney's 'former' company can ask it's citizenry to be enthusiastic about paying taxes. ... We all know how corrupt the system is including the IRS. "Who are you going to believe, me or your lying eyes?" -Groucho Marx Many will tell you to get the services of a CPA, enrolled agent, or attorney. I vote for TAX attorney. Find their national organization and contact a local member. The advantage for using an attorney is that whatever you tell them is priviliged. In our case, I send a backup of our Quickbooks file to the attorney and back comes our corporate returns (federal and state) signed by someone the IRS doesn't really want to screw with. |
IRS Audit..!
On Thu, 6 Mar 2008 20:23:08 -0500, (N O) wrote:
And what does this have to do with home repair? What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. My nerves are shot. I don't keep very good records. And the more I've been researching, the more I'm finding things I could have been deducting and things I deducted incorrectly. I just don't see how the same government that awards no bid contracts to Chaney's 'former' company can ask it's citizenry to be enthusiastic about paying taxes. ... We all know how corrupt the system is including the IRS. "Who are you going to believe, me or your lying eyes?" -Groucho Marx -- Click here every day to feed an animal that needs you today !!! http://www.theanimalrescuesite.com/ Paul ( pjm @ pobox . com ) - remove spaces to email me 'Some days, it's just not worth chewing through the restraints.' 'With sufficient thrust, pigs fly just fine.' HVAC/R program for Palm PDA's Free demo now available online http://pmilligan.net/palm/ |
IRS Audit..!
There are hundreds of millions of dollars unaccounted for in Iraq.
And the IRS is looking for chump change on my street..? If you buy stamps for your business and you use one for a piece of personal mail, you are in violation of IRS rules... So, who hasn't run afoul of IRS rules .. Yea. I have a home office. But it is legit and have had one for over a decade. And if you're busy making good money, you often don't have time to keep good records...uh ...that is until you get hit over the head like this and realize it's cheaper to keep 'em... I think I'm getting a lawyer. Thanks for all the supportive comments... "Who are you going to believe, me or your lying eyes?" -Groucho Marx |
IRS Audit..!
N O wrote:
There are hundreds of millions of dollars unaccounted for in Iraq. Not a tax or IRS problem And the IRS is looking for chump change on my street..? It sounds like they're looking for tax irregularities. If you buy stamps for your business and you use one for a piece of personal mail, you are in violation of IRS rules... Actually, you are allowed to use business supplies for personal use as long as you deduct the portion used for personal expenses from the business expenses on schedule K. So, who hasn't run afoul of IRS rules .. Purposefully or accidentally? Yea. I have a home office. But it is legit and have had one for over a decade. Then you should have no problem meeting the IRS definition of legitimate use. I haven't had a problem doing the same. And if you're busy making good money, you often don't have time to keep good records... Baloney. I make exceptionally good money working 12 to 16 hour days and I keep great records. uh ...that is until you get hit over the head like this and realize it's cheaper to keep 'em... Organized records and accounting books are a real key to the success of any business. Even if the IRS wasn't around, I'd be doing it anyway. I think I'm getting a lawyer. Thanks for all the supportive comments... At this point, it would be a great idea. -- Dave www.davebbq.com |
IRS Audit..! READ THIS
The place to have asked this question is the tax newsgroup,
misc.taxes.moderated. The best answer I can give you is "NEVER attend an IRS audit unless there is an order requiring your attendance. Give a CPA, an EA (enrolled agent), or a Tax Attorney your power of attotney (there is a specific form for that) and the IRS is not allowed to deal with you directly." Better put - don't get into a tiger cage unless you know how to fight off a tiger. Dick -- Richard D. Adams, CPA (retired) Moderator - misc.taxes.moderated |
IRS Audit..!
N O wrote:
There are hundreds of millions of dollars unaccounted for in Iraq. And the IRS is looking for chump change on my street..? You can't build a house without making sawdust. Besides, it's not the Internal EXPENDITURE Service that has questions of you. If you buy stamps for your business and you use one for a piece of personal mail, you are in violation of IRS rules... So, who hasn't run afoul of IRS rules .. No, you are not. IRS regulations are governed, in part, by the 'de minimus' rule. Yea. I have a home office. But it is legit and have had one for over a decade. "Legit" is in the eye of the beholder. It may not be according to IRS regulations. And if you're busy making good money, you often don't have time to keep good records...uh ...that is until you get hit over the head like this and realize it's cheaper to keep 'em... I think I'm getting a lawyer. Thanks for all the supportive comments... You might just go ahead and let the IRS figure your tax. After all the upheaval, you may get a "Notice of Deficiency" of only $38.42. |
IRS Audit..!
wrote in message And what does this have to do with home repair? About the same as you have below Click here every day to feed an animal that needs you today !!! http://www.theanimalrescuesite.com/ Paul ( pjm @ pobox . com ) - remove spaces to email me |
IRS Audit..!
joe wrote in message ... How do you break 100k without good record keeping? Forget researching, use your, (or get a) CPA but quick. Last week when I had my taxes done, I have a home office too, the CPA said that new for this year, most of the records and worksheets he keeps on file are privileged. He did say, if the IRS audits me and I decide to handle it on my own, without contacting him, all bets are off, and all of his records are fair game too. Whatever that means. :-) Cheri |
IRS Audit..!
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IRS Audit..! READ THIS
In article , (Dick Adams) wrote:
The place to have asked this question is the tax newsgroup, misc.taxes.moderated. The best answer I can give you is "NEVER attend an IRS audit unless there is an order requiring your attendance. Give a CPA, an EA (enrolled agent), or a Tax Attorney your power of attotney (there is a specific form for that) and the IRS is not allowed to deal with you directly." Better put - don't get into a tiger cage unless you know how to fight off a tiger. That's a keeper! I shall remember that one, for ever! -- |~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~| | Malcolm Hoar "The more I practice, the luckier I get". | | Gary Player. | | http://www.malch.com/ Shpx gur PQN. | ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ |
IRS Audit..!
On Mar 6, 7:43*pm, "Cheri" gserviceatinreachdotcom wrote:
N O wrote in message Personally, I wouldn't go to their office. They get paid for their time and travel to come to yours...... Exactly the reason I always file a hard copy return instead of electronically. They're getting paid to work so why make their work easier for them. And the old argument of getting your refund faster is nonsense also - they've had your money for almost a year anyway so what does waiting a few more weeks matter? Red (If quitters never win, and winners never quit, what fool came up with, "Quit while you're ahead?") |
IRS Audit..!
Cheri wrote:
Malcolm Hoar wrote in message ... In article , (N O) wrote: What a time to get this piece of mail. Any advice on how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My business broke 100k in '06 and apparently that substantially raises your odds of being audited.. Sounds like you took a home-office deduction. Bad idea. As my CPA put it... "they get a hard on the second they see a home office deduction". Well, unless you home office is a completely separate room with no "personal" stuff in it at all, I suggest you meet at their offices, if you can ;-) You'll also have some time if they ask for a document that you forgot to bring with you. The criteria here in CA where I am, It doesn't matter *where* one resides; the IRS rules for home office deduction are the same wherever one lives. State taxes are a different matter; since I live in Washington State where there is no state income tax, I have no idea if home office deductions would even apply on a state return. -- Dave www.davebbq.com |
IRS Audit..!
Dave Bugg wrote in message ... Cheri wrote: The criteria here in CA where I am, It doesn't matter *where* one resides; the IRS rules for home office deduction are the same wherever one lives. That makes sense since it's federal. I'm just so used to everything being different in this strange place I guess. :-) Cheri |
IRS Audit..!
"Red" wrote in message And the old argument of getting your refund faster is nonsense also - they've had your money for almost a year anyway so what does waiting a few more weeks matter? ************************** Refund? Why let them have your money for free anyway? I'd rather pay a few bucks than get a big refund. |
IRS Audit..!
On Mar 7, 1:40*pm, "Cheri" gserviceatinreachdotcom wrote:
Malcolm Hoar wrote in message ... In article , (N O) wrote: What a time to get this piece of mail. Any advice on *how to deal with an IRS audit? Now I'll have to pay for this AND come up with the money for 07 soon. Anyone been through a field audit? Everything I read says do it at their office. They want to come to my home based office.. My *business broke 100k in '06 and apparently that substantially raises your odds of being audited.. Sounds like you took a home-office deduction. Bad idea. As my CPA put it... "they get a hard on the second they see a home office deduction". Well, unless you home office is a completely separate room with no "personal" stuff in it at all, I suggest you meet at their offices, if you can ;-) You'll also have some time if they ask for a document that you forgot to bring with you. The criteria here in CA where I am, is no personal stuff, and no clothes closet, so it can't be construed as a bedroom or family room etc., you can store files and things, but no clothes.If he goes there, he should be prepared to run back and forth at least fifty times to get the documents he didn't think about. I'd sooner trap them in my home, and chain smoke. JK, I don't smoke in my home.;-) Cheri- Hide quoted text - - Show quoted text - I'd sooner trap them in my home, and chain smoke. My wife and I once made an insurance salesman give us his pitch at our picnic table...in October...at sundown. We were dressed for it, he wasn't. That was fun! |
IRS Audit..!
One book I speed read at Borders says to approach it like some on this
board. It says to turn a field audit into a mail audit. The author says to say you have used up alot of time and money gathering records and cannot afford any more time to come to their office and spend an entire afteroon, and you aren't leagally compelled to allow them in your home. He says the average adjustment is in the 2500 dollar range when you do this. He goes on to say the average for a field audit in which you cooperate and do alot fo their leg work for them is 10k or so.. I read another book that said the GAO's audit of the IRS in 2003 and 2004 was failed by the IRS! They could not account for millions of dollars of their own expenditures etc. That in itself shrinks them down to size for me. The more I read both here and in books, the more I am prepared to defend my 14 year old business and myself. And I , like another poster, during my research have found several things I should have been deducting. Thanks "Who are you going to believe, me or your lying eyes?" -Groucho Marx |
IRS Audit..!
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IRS Audit..!
"N O" wrote in message One of the problems I'm having is the timing. All the tax people are too busy to take this on now. Can I file an amended return while this is going on? If so I will, as I've found almost as much good I can do as I have errors I can correct. She sent me a copy of my return. I could not find mine to even see what she was addressing. Now that I see it I see some are just plain data entry errors, while others are explainable. ********************************** AFAIK, you can still file an amended return. Rather than go to their office, correspond with them and it may turn out to be a simple mail audit. If they accept the amended return you are done. You can also explain that you need professional help and it will not be available until after April 15. In spite of the horror stories you hear, they can be reasonable if you are also. Keep in mind, they have a job to do and a boss to please so they may want to "win" something. |
IRS Audit..!
"N O" wrote in message
What a time to get this piece of mail. Any advice on how to deal with an IRS audit? I would imagine that if you intended to file your taxes correctly, but just did not know about all the rules at the time, then I suppose that would be quite a common thing. Probably will be just a learning experience. Might as well bite the bullet and learn how you need to do these things in the future. But if you tried to cheat, then that is another matter. I help my friends with their taxes. It is quite obvious to me if they are doing something wrong because they do not understand these things as opposed to someone who is intentionally trying to cheat. |
IRS Audit..!
N O wrote:
One book I speed read at Borders says to approach it like some on this board. It says to turn a field audit into a mail audit. The author says to say you have used up alot of time and money gathering records and cannot afford any more time to come to their office and spend an entire afteroon, and you aren't leagally compelled to allow them in your home. OTOH the IRS is not compelled to give you an audit. They can simply disallow all your deductions and send you a bill. He says the average adjustment is in the 2500 dollar range when you do this. He goes on to say the average for a field audit in which you cooperate and do alot of their leg work for them is 10k or so.. Who is the author of this book? Do you know whether or not he/she went to the federal slammer in 2005/2006? .... The more I read both here and in books, the more I am prepared to defend my 14 year old business and myself. And I, like another poster, during my research have found several things I should have been deducting. A home repair newsgroup is such a great source of tax advice! As is reading self-help tax books! When the auditor disallows your deduction, just say "I read it on the Internet" or "This book says different." Do not get into a Tiger cage unless you know how to defend yourself from a Tiger who is behind on quota. Dick |
IRS Audit..!
One of the problems I'm having is the timing. All the
tax people are too busy to take this on now. NOT TRUE. The first thing a tax guy will do is contact the auditor and move the date into May or June. Dick |
IRS Audit..!
On Mar 7, 10:29 pm, "Edwin Pawlowski" wrote:
"Red" wrote in message And the old argument of getting your refund faster is nonsense also - they've had your money for almost a year anyway so what does waiting a few more weeks matter? ************************** Refund? Why let them have your money for free anyway? I'd rather pay a few bucks than get a big refund. On the other hand, getting even just a few dollars back each year protects you if you're self-employed (as many professionals in this group may be). The IRS has something called "safe harbor": if you didn't pay the proper amount of quarterly tax payments this year BUT you did pay at least $1 (one dollar) more than you owed in the previous tax year, you have "safe harbor" and will not have to pay the stiff penalties the IRS would otherwise levy. This may also be true for the state in which you file. At least, this is what my accountant told my wife and I when we met with him. As a pastor, I'm self-employed as are my colleagues, but apparently most of them have no clue as to how to fill out the forms for the IRS, the state and Social Security and make the appropriate payments and such, so I was never able to do mine in 2007. Now I have "a guy" who will set it up for me and explain it all to me so I know what the heck I'm doing... As always, don't assume what I say is entirely accurate. Consult your accountant for the most accurate advice. |
IRS Audit..!
N O wrote:
One book I speed read at Borders says to approach it like some on this board. It says to turn a field audit into a mail audit. The author says to say you have used up alot of time and money gathering records and cannot afford any more time to come to their office and spend an entire afteroon, and you aren't leagally compelled to allow them in your home. I've been buying and using Turbotax for years. I'm retired but do some consulting and take a lot of business deductions. When the program reviews your return it will tell you if there are any high visibility items that might trigger an audit. Many years ago, I responded to their mail inquiry by mail and I had made an accounting mistake but it did not cost me anything. Also got fined once by the state for not filing quarterly which must be done if you owe more than $800. Most annoying is that they waited 2 years to tell me and I had to pay interest. The IRS audit was also after 2 years and I made mistake of not noting the date and sent in that year's files and they corrected me. I believe you only need to save your tax records for 7 years. I toss mine at that point. |
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