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Taxes and Audit is serious business, however we remember few cases to learn from:
Let's be reasonable:
Tax payer referred to me through a relative. The tax payer does not have any reported income and over 20,000.00 of business expenses. Tax payer was looking for a refund like everybody else.
Tax was prepared based on economic reality of
Around $36,000.00 annual mortgage interest and taxes
Around $400.00/Month Food
Around $1,200.00/Month Transportation
Total: 55,200.00
Total Expenses 20,000.00
Taxpayer paid only self employment tax on net income from schedule "c". ....
Be ware, IRS Auditor may not have any other cases:
1 year and six month auditing a bankrupt business. Auditor cant find mistakes or unreported income. Supervisor cannot remove the auditor till auditor is satisfied
Taxpayer did not have money to pay for our representation.
Audit report claimed $69,000.00 of unpaid tax using reverse sign for income and expenses.
We found no bases to claim. IRS accept tax return as originally filed after 18 month. ....
Why did you answer the phone:
I called IRS practitioners hotline. IRS representative did not have access to client's accounts nor understood the tax issue. However IRS representative offered to take a message!! ....
Ops, $169,000.00 running out of statue:
This client referred to me during a social function. Audit letter was send to client and no action was taken by client. IRS representative called client but he was not willing to call back without representation from a professional.
We called the IRS Representative and she was ready to go into a maternity leave and promised to assign the case to another examiner.
After we called and faxed our request to have the audit started (4 Months) Auditor started. After 4 visits of 45 days apart, We received an adjustment letter dated 12/28/**** of $169,000.00 under payment of taxes and penalties.
Auditor did not complete the audit but issued adjustment of any questionable items on the tax return. Statue expires after 3 days of the letter.
This auditor made more than 15 different mistakes during the audit. We explained that in our appeal letter.
We appealed and accepted to pay less than $2,000.00 for missing documents. ....
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