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Posted by bjackson445 on March 20, 2007, 3:24 pm
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I got a letter for from the IRS and they want to audit my
business. Specifically they are interested in two items for
the 2005 tax year:
- receipts concerning business legal expenses which I
deducted from my gross income
- gross receipts for 2005
In the letter it says the following:
"If you do not respond to this letter, we will issue an
examination report showing additional tax due. Therefore,
it is to your advantage to call and schedule an
appointment."
My question is, should I not call and wait for them to send
me this examination report showing any taxes due. If the
taxes aren't too much, I'll just pay them. When I think
about how much time it will take to prepare for an audit,
hire a CPA, etc. I think it would be simpler just to pay
whatever I may owe. I suppose if the amount they say I owe
is outrageous, I can either make an appointment at that
point with the IRS auditor or even appeal the tax amount
they say I owe. Any advice would be greatly appreciated.
Thanks.
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<< that may be imposed upon the taxpayer. >>
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Posted by Benjamin Yazersky CPA on March 21, 2007, 1:46 pm
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> I got a letter for from the IRS and they want to audit my
> business. Specifically they are interested in two items for
> the 2005 tax year:
> - receipts concerning business legal expenses which I
> deducted from my gross income
> - gross receipts for 2005
>
> In the letter it says the following:
> "If you do not respond to this letter, we will issue an
> examination report showing additional tax due. Therefore,
> it is to your advantage to call and schedule an
> appointment."
>
> My question is, should I not call and wait for them to send
>
> me this examination report showing any taxes due. If the
> taxes aren't too much, I'll just pay them. When I think
> about how much time it will take to prepare for an audit,
> hire a CPA, etc. I think it would be simpler just to pay
> whatever I may owe. I suppose if the amount they say I owe
> is outrageous, I can either make an appointment at that
> point with the IRS auditor or even appeal the tax amount
> they say I owe. Any advice would be greatly appreciated.
You wrote to this forum asking advice
Accordingly, my advice is to CALL YOUR CPA (or ea) TODAY
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Harlan Lunsford on March 21, 2007, 1:46 pm
Please log in for more thread options bjackson445@yahoo.com wrote:
> I got a letter for from the IRS and they want to audit my
> business. Specifically they are interested in two items for
> the 2005 tax year:
> - receipts concerning business legal expenses which I
> deducted from my gross income
> - gross receipts for 2005
>
> In the letter it says the following:
> "If you do not respond to this letter, we will issue an
> examination report showing additional tax due. Therefore,
> it is to your advantage to call and schedule an
> appointment."
>
> My question is, should I not call and wait for them to send
> me this examination report showing any taxes due. If the
> taxes aren't too much, I'll just pay them. When I think
> about how much time it will take to prepare for an audit,
> hire a CPA, etc. I think it would be simpler just to pay
> whatever I may owe. I suppose if the amount they say I owe
> is outrageous, I can either make an appointment at that
> point with the IRS auditor or even appeal the tax amount
> they say I owe. Any advice would be greatly appreciated.
1. Take the bull by the horns, iow, pro act instead of
react.
2. Find a local Enrolled Agent (EA) or CPA of course, who
is experience in representation matters to handle this for
you.
I say this because, they know something you don't know. And
therefore it's best to take yourself out of the equation by
hiring a .... well. a "mouthpiece".
Before the audit, go back an verify each and every business
receipt of income, matching it up with reported 1099's from
vendors. And make sure you have a statement from the lawyer
as to exactly what the business purpose was for his fees.
When you meet with your representative, be prepared to bare
your soul. You won't have to go to the audit with him, but
you will have to prove your case for your representative to
adequately represent you.
good luck!
Oh, btw, you would only just pay them what they say you owe
IF you have a guilty conscience.
ChEAr$,
Harlan Lunsford, EA n LA
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Mark X. Rigotti, CPA on March 21, 2007, 1:46 pm
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> I got a letter for from the IRS and they want to audit my
> business. Specifically they are interested in two items for
> the 2005 tax year:
> - receipts concerning business legal expenses which I
> deducted from my gross income
> - gross receipts for 2005
>
> In the letter it says the following:
> "If you do not respond to this letter, we will issue an
> examination report showing additional tax due. Therefore,
> it is to your advantage to call and schedule an
> appointment."
>
> My question is, should I not call and wait for them to send
> me this examination report showing any taxes due. If the
> taxes aren't too much, I'll just pay them. When I think
> about how much time it will take to prepare for an audit,
> hire a CPA, etc. I think it would be simpler just to pay
> whatever I may owe. I suppose if the amount they say I owe
> is outrageous, I can either make an appointment at that
> point with the IRS auditor or even appeal the tax amount
> they say I owe. Any advice would be greatly appreciated.
Traditionally, they will take your gross receipts - disallow
everything and assess the tax, penalties, interest and the
100% responsible party penalty ........... Basically
everything they can hit you with.
Now it is your choice.
Regards,
Mark
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Vic Dura on March 21, 2007, 1:46 pm
Please log in for more thread options jackson445@yahoo.com wrote:
> My question is, should I not call and wait for them to send
> me this examination report showing any taxes due. If the
> taxes aren't too much, I'll just pay them. When I think
> about how much time it will take to prepare for an audit,
> hire a CPA, etc. I think it would be simpler just to pay
> whatever I may owe. I suppose if the amount they say I owe
> is outrageous, I can either make an appointment at that
> point with the IRS auditor or even appeal the tax amount
> they say I owe. Any advice would be greatly appreciated.
Count on the amount that they say you owe being outrageous.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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