Yep, its that time of year. Any lessons-learned on audits, or how it worked out for you?
There are various "degrees" of "audit", as sometimes you will get a letter noting a missed bank income reporting, which is easy to fix.
Yep, its that time of year. Any lessons-learned on audits, or how it worked out for you?
There are various "degrees" of "audit", as sometimes you will get a letter noting a missed bank income reporting, which is easy to fix.
I have never been audited....
I had an audit 2 years ago. But I was ready. I had an inch thick backup documentation just in case.
It wasn't a bad process actually. The IRS used to be borderline abusive until Congress took them to task for being too heavy handed.
So the deal is be cordial to them and they should be cordial to you. I saw how they seemed to have leeway and can meet you halfway on some items if you have a reasonable justification.
It was also helpful to have a tax attorney to guide me through various decisions through the years. I made sure to tell that to the IRS agent as well, as I could have brought the attorney up to bat for me, but it was not necessary.
Quest (02-05-2018)
I wonder how many who have 'bad audits' do so because they are NOT conscientious and make mistakes that end up being costly...
but I think the more complex the taxes the more likely of an audit...
Quest (02-06-2018)