Posted on 07/21/2009 7:52:54 PM PDT by ROTB
I got audited in 2008. Get an accountant to go with you, do not meet in your home, but all meetings should be at the accountants office. Any gray areas should be answered with “I’ll get back with an answer”. My tax return was relatively pristine so I did not get an attorney but that might be a good idea if the amounts in question are large.
The auditor is likely to be an ass but my experience only has a sample size of one.
When I was done, the auditor sent me a bill which I paid. Apparently someone audited the auditor because later they sent me a letter with a check refunding about 10% of what I paid.
If you got a CP2000 letter, it compliance letter kicked out by a computer. It usually is very specific and indicates what caused the audit. Unless you _know_ you are right (and have legal advice to back it up), dont challenge it; just pay up.
I’ve had letters AND phone calls. The phone calls were friendly and WHAT’s up?
I didn’t file (for a good reason) and they owed me money.
1. Get a good tax lawyer to review the data.
2. Tell the lawyer the truth, all of it.
3. Take the lawyer’s advice.
4. When talking to the IRS, answer questions honestly and but do NOT volenteer information.
Did they do their own taxes, or have a CPA do them?
If they did them themselves, get a tax lawyer. If not, have the CPA handle it.
I’ve been audited a bunch of times, and only had one (small) penalty in 38 years. Always let the pros do what they do best.
I trusted TurboTax, which missed some investment data. TurboTAx downloads data from investment firms, but in my case the data was incomplete. The IRS letter said I owed $7000 and to respond in three weeks (just before April 15th.) A friend accountant completed a response with the advice to send as little as possible. They didn’t like “little” and affirmed the first notice. Now that it was after June 1st, I hired a good accountant and he completed all the forms, called and faxed them to the IRS. I’m awaiting a response, but will appeal before the 90 days is up if I don’t hear.
I prefer honesty, so I’ll tell em what ever they want to know.
Life is to short to be a slave.Move to another country and find your freedom.
Tell them you want to talk to Obama and want a cabinet or czar position
Yeah that’s a classic CP2000. The TT download missed one of your 1099Bs. The computer got the broker’s 1099B and your was missing, hence the letter kicked out. By default they will try to tax you on the entire amount of the stock sold.
Get the 1099B from your broker and make sure it includes the broker’s Federal ID number and that your SSN. Take the 1099B and circle in red ink the Stock Basis amount. Subtract the basis from the sale price and compute the taxable gain (showing your arithmetic). Also compute the penalty (Turbo Tax should help there) and show all your calculations. Send it in with a check you should be golden.
Remember, the IRS only cares about the money.
Well, I hate being an asshole, but here goes...
Had you lived back in 1776 and the taxman came after you, you would’ve been supported by someone like Sam Adams and the Sons of Liberty. The tax collector would’ve been driven out of the community and you and your family would’ve been safe.
Today, however, there is no such thing as patriots controlling local governments, protecting citizens and tarring and feathering tax collectors.
Nope, you’re on your own, buddy, and no local conservative will help you. In fact, nobody cares about you, so you might as well get on your knees and be fitted for chains.
In fact, your local conservative neighbor may be armed to the teeth with a Glock, an AK-47 and a Mossberg, but it does you no good. He’s too busy watching American Idol and can’t be bothered to attend a local council meeting and hear your troubles.
So, good luck in your misery, we’d help but we’re busy watching American Idol or some other stupid cop show and we’re scared.
Go meet with the IRS, play dumb and ask thousands of questions, whine and cry and tell them about the squirrels that keep running across your desk. They will help you out. LOL
Wow...
Never heard of them making phone calls...
Time to disconnect the landline....
The friend should tell them it’s none of their business how much he pays in taxes.
And then he should challenge one of their agents to a duel with broadswords.
No sweat use turbo tax timmy’s defense it was the computers fault...good enough for the Secretary of the Treasury!
Tax attorney. People who try to cooperate on their own and do the ‘total transparency’ thing say too much and give too much info the govt has no need for, and they can end up making things a LOT worse.
If you understand that you never say anything more than very short answers to police, it’s the same situation. If things get hairy, you stop talking and get your lawyer. The lawyer will tell you what you should and shouldn’t answer, and how you should answer. Brief to the point. No more than necessary. Otherwise they will go on a fishing expedition on your @ss.
Unless we did something wrong, we were audited in the 1990s, and the IRS agent didn’t give us a choice. He just showed up at our house whenever he wished. He even showed up on Christmas Eve. He was mean, arrogant, and told my husband that the IRS waS a big agency and could “squash us like a bug”. I think part of the bad treatment we got was because we were pro-life activists, and that may have had something to do with it.
Yes, excellent point. CID agents are assigned only cases where they believe criminal activity has gone on. A regular IRS agent would be on cases where they do not believe fraud/crimes exist, but if it is uncovered that it appears to be, it woudl be turned over to CID.
In either case I’d still get a tax attorney. One that deals with the IRS.
Ah yea IRS audit. The only place in US legal structure that not only do they ask you to testify against yourself, but they require it.
Get a lawyer and have him do the talking.
As an alternative you can use an “enrolled agent” as an alternative to an attorney. These are usually retired IRS agents who know the ins and outs, and are not as expensive.
Do not show up alone.
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