Reply With QuoteNever, EVER, which ever one is longer, go to an IRS audit yourself. Send your CPA.
You don't go to Lisa? Only about 3 people at my office DON'T go to her. One person at my office got audited (randomly) and she handle the whole thing. Told the person what receipts she HAD to have and that she would handle the rest. No problem. Over and done with.
no i don't go to lisa. she also charges you 400 bucks to handle an audit where my guy does it for free. lisa is good at what she does but i have a feeling her well none getting 5 to 10k is going to blow up on people some day. i hope not. my wife practacally tripled her income from o3 to 05 and i think that is what got us flagged. my fault, i didn't keep the reciepts and the ones that i did keep i lost when we moved to the new house. everything got thrown out, making a new start "you know?" bad idea. oh well live and learn.
Never, EVER, which ever one is longer, go to an IRS audit yourself. Send your CPA.
she also charges you 400 bucks to handle an audit where my guy does it for free.
She told us $150 to handle the audit, if it ever happens. That's what she charged in the previously mentioned incident. All came out fine, as it was just a "random" audit. Nothing was out of line, so it was all good.
Her neck it out just as much as the client, so I have not doubt she knows what is safe and what is not. Sounds like you have a good CPA anyway - or I guess you'll find out now, eh?
Good luck with that.
No I should not owe even close to 10k. I wrote off around 15k or so in 05. Thats what I wrote off as unreimbersed business expenses. Of course they dont give that whole amount back only the portion that was paid in tax for that amount. It was around 3k or so back. So I guess at the worst ill pay that back to them.
You hope you only owe them the 3k back....if you wrote off 15k in business expenses, you need to prove with reciepts the 15k. If you wouldnt have wrote off the 15k, you probably would have ended up owing them like 10k(for that tax year) instead of getting back 3k...get it? Ive been audited before, and its a pain in the ass. You have to prove almost every penny, they wont take your word for anything, and stuff that you thought were write-offs and business expenses, they determine if its legitimate, not you. Good luck, and be prepared to owe more than you got, seems like they always win.
Never, EVER, which ever one is longer, go to an IRS audit yourself. Send your CPA.
You got that right. You can sign power of attorney to your cpa and he can handle the whole thing. Likely offer and compromise if you do in fact owe, but this does seem like a relatively small case.
Incidentally people, 400.00 seems ok charge for a CPA handling a case like this. A couple of the last cases my dad was working on took many hours of work. One was just shy 20k billing, and the other was around 9k. Then again, what's 5-15k when the IRS is comming after you for nearly a mil(+) :hammerhea It's all relative, I guess...
A good CPA rate is between 185-250 per hour....(IRS defense, Valuations, and Forensic work)
OK so how do you all think I should handle this. I filed my taxes online myself so a cpa was not used. Should I go find one to handle all this or deal with it myself.
Find a CPA through a friend or a tax attorney that can help you.
OK so how do you all think I should handle this. I filed my taxes online myself so a cpa was not used. Should I go find one to handle all this or deal with it myself.
I just went thru an IRS audit last year. My CPA told me that she had done many audits and it was no biggie, just make sure I had everything organized for them. And trust me, "organization" is definitely the key ! It took me 3 months to get everything ready, but I had all my shit together for the audit and separated it all for each month. After looking thru the first 3 of months of records, the agent laughed and told me it was the most organzied records audit he had ever seen, and then said it all looked fine. He had a question about my excessive mileage that I claimed (uh oh). Although I had a written log (BS), which is all that's required, he asked for maint receipts to prove the mileage. Luckily I was able to come up with some "genuine" oil change receipts. So the repair shop owner (my buddy) calls me a couple weeks later and said the agent showed up and wanted to see the recipts for my vehicle to make sure they were genuine. Luckily he had them logged in the computer with the "correct" mileage, so everything added up. So after sweating the audit for a few months, the IRS finally sent me a letter of "no change". I would suggest coming up with some receipts and most of all, make sure it's all ORGANIZED and easy for them to go through !! Walking in the agents office with a box of receipts isn't gonna score many points ! I'd still contact a CPA too ! Good luck
well my problem is that I dont have any of it. ANY ANY ANY of it. I called a cpa today and he said that really there was nothing that a cpa could do. He said that if I called the irs and explain what has happened that they would give me some direction and what I could do. He said that if I was up front with them that it usually ends up ok.
So anyways I did call the irs. They said first get a letter from my past employeer stating what they would and would not reimberse. So thats no biggy cause they dont pay for crap. They said for mileage I could mapquest out routs etc. For cell phone I could use an average or something.
They were not total pricks about it. However im sure ill end up paying something. Hopefully just not too fokin much.
anyone been through an audit where they lost it all.
HELP
One way and only way to look at a audit.Thru the eye of the IRS
you are guilty and till you can prove your not.You need copys of all in
question. I just been thru a audit.Remember they are auditing you to get more money and they will get some. Get a cpa or just write them a check for
what they want. Good luck you will need it.
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