I made number errors that will trigger red flags in my schedule c returns but it was too late to amend. the irs has already ask me the come in for an audit.
2007-09-17 14:56:37 · 5 answers · asked by eric96815 1 in Business & Finance ➔ Taxes ➔ United States
Carefully and clearly document your income and expenses. Have all your bank statements and receipts for expenses together. The audit should focus on a limited number of items. You should document each number and if you can't backup the number you put on your return be prepared to explain why. If you are honest and upfront with the auditor they may decide not to expand the audit into other areas/years. If the errors are large (15% of income or more) then you may wish to spring for the EA or CPA to represent you.
2007-09-18 06:38:08 · answer #1 · answered by daoco 4 · 0⤊ 0⤋
You have 3 years from the due date of the tax return (4/16) or 2 years from the date the taxes were paid, which ever is longer. You waited 3 years before deciding to amend? Anyway, if the IRS wants an audit in person, request to do the audit by correspondence (telephone, mail, etc.) AND HAVE A GOOD REASON. The IRS allows you fair time to gather receipts and find ways to substanciate your expenses, etc. Be sure they will make sure the return is done "by the book" too. Good luck.
2007-09-17 15:04:48 · answer #2 · answered by Jonathan 1 · 0⤊ 0⤋
they are better than they used to be. but it's still like getting fired. no matter who does it, in what manner, it still bites and can get costly in more ways than one. i've been through both. if you use an accountant, which i doubt you do, but you earn more than 50k, and you can scrape up a little cash 200-500, see an accountant. get the fees upfront. not necessary to bring the accountant along because that will cost a fortune. just the consultation is what you'll need. you'll probably get fined at the irs, they always do that. it's pretty standard so they can recover their costs of the ageng auditing you. but they won't tell you that. be cool with the agent, alll sorts of laws against assaulting a irs agent. good luck.
2007-09-17 15:05:41 · answer #3 · answered by 27ysq 4 · 0⤊ 0⤋
If you are concerned, hire someone to represent you. Go over your return with your representative and let him speak to the IRS. You will not have to say anything.
Your representative needs to be an attorney, CPA, or Enrolled Agent.
2007-09-17 15:06:24 · answer #4 · answered by ninasgramma 7 · 2⤊ 0⤋
If you are concerned, hire a tax attorney.
2007-09-17 15:03:57 · answer #5 · answered by Darke Angel 5 · 0⤊ 0⤋