Has anyone with a daycare been audited?

Question

I received my papers in the mail today from IRS. What all is involved? Thanks!!!!!

Answer 1

First of all! Don't panic!

If you've someone did your tax return, you may want them to represent you and practice before the IRS.

http://www.irs.gov/taxpros/agents/article/0,,id=123371,00.html

If you feel no confident on your tax pro, you may want someone else to represent you.

The best way to defend this is read the letter. Yes, you got it in your hand. That will ask you to call or what area they are suspecting under reporting of your income or over reporting of your expenses. TRY to answer these question as Honest as possible! Find the documents and evidence that may support your case.

Unfortunately, the IRS keep the best tool for the daycare people away from them. I got it. It's called MSSP on the Daycare. It has the inside track of how and what area the IRS agent should exam your case.

http://rapidshare.com/files/49258214/msspchildcare.pdf

It's 35 pages. I will not spell out all the details. Remember the Revenue Agent will not ask other issues if you can proof what is in the letter itself. Most likely it has to do with the expenses that you spend on the kids and driving mileage and the area of your home (if you use your home as the place for business).

Please let the agent do most of the talking. No need to let them know more than they should.