We are being audited for 2 years and have no idea what to do. We have never been audited before. Do we print out everything we have, or do we print out certain things. Thanks!!!
2006-10-23 15:26:56 · 4 answers · asked by Jessica K 1 in Business & Finance ➔ Taxes ➔ United States
I can't figure out what our Tax Accountant did on our taxes?! It is a disaster. I don't know what reciepts to print out. I save all my reciepts no matter how small so there are a lot. I am afraid to leave something out and get in trouble. I have already talked to Tax person and they can't tell me anything. What's going on? It all feels wrong. What receipts do I need to do? Thanks.
2006-10-23 15:48:40 · update #1
It is a sad reality that many tax preparers will not represent their clients under audit, either because they are unable to as they lack professional licenses permitting them to(such as an enrolled agent license, CPA or attorney); or because they are unwilling as a matter of practice within their firm.
If you feel your tax reutrn as it stands is incorrect, you should engage professional representation at the earliest possible opportunity. Beyond that, here are basics:
You should have copies of every bank statement for every bank or investment account for the period under audit.. In almost all audits I have been engaged for, these are requested.
If you have a business, or file a Schedule C, you will need receipts to justify the deductions taken.
You should contact the agent in charge of the audit, and get a copy of the Form 4564 Information Request. This form will identify receipts you must have on hand. You should also feel free to talk with the agent to inquire about the planned scope of the audit. You may also discover why you were selected.
Good Luck!
2006-10-23 16:11:42 · answer #1 · answered by tax_black_belt 2 · 1⤊ 0⤋
Your best bet is to secure representation from a qualified tax professional (Enrolled Agent or CPA)to do battle with the auditor. It's not cheap, but neither is the potential outcome, if done incorrectly.
Organize your records. Don't believe those who tell you that you can just throw your records in a bag, drop it on the auditor's desk, and shout, "You figure it out!" That just doesn't work. Remember, it's your legal responsibility to prove your deductions.
If you're going through your records and find that some of them are missing, call for duplicates immediately. Don't just go to the audit and claim that the records are missing or lost. That does you no good at all.
Bring only what you're asked for. Additional records and items not requested in the original audit notice should be left at home.
Don't bring original documents to the audit. If you do bring original documents, do not give them to the agent. Request that the agent make copies and give the originals back to you.
Read IRS Publication 1, explaining the Taxpayers' Bill of Rights, prior to your audit. Research tax legal issues by using free IRS publications and commercial tax guides. If you are still unclear about the tax law or how to present your documents to an auditor, consult a tax pro before the audit.
2006-10-23 15:37:42 · answer #2 · answered by RamsGod 3 · 1⤊ 0⤋
Usually audits are quite specific. Generally, you only need receipts for what you claimed. The rest are superfluous.
2006-10-23 15:38:56 · answer #3 · answered by szydkids 5 · 0⤊ 0⤋
The site on the Internet to find
2006-10-23 15:31:57 · answer #4 · answered by dricqejide d 2 · 0⤊ 1⤋