Audit By IRS – Killer Tax Audits Answers
Audit By IRS And Have Not Heard From The Auditor In Months
Most likely that’s good news for you. The longer they wait, the more pressure there will be in to close the audit later on. If the auditor is transferred off your case and the case “falls through a crack”, it may close without any adjustments because the time period to audit you has lapsed. Sometimes audits will put the burden on you or hurrying up with the threat of big adjustments against you. That’s where our experience can help you.
Can I Make It Through An Audit Without Owing More Taxes?
Very few people and businesses make it through an audit without changes. We’ve seen IRS auditors trying to make every deposit an income. We’ve experienced auditors disallowing deductions when taxpayers can prove the expenses. We filed an appeal last year on a hobby loss case. The taxpayer’s business was obviously carried on as a business. The auditor used the general rule and said that since it didn’t have profit in 3 of the last 5 years it was a hobby. Showing the auditor tax court case and explaining that there are circumstances that go beyond the general rule didn’t matter. We do not recommend you handle an audit without professional CPA help.
Should I File Next Years Return During An Audit by IRS?
Not really. You don’t want it selected for audit. File the first extension which takes you to Aug. 15th. You may elect to file late and pay the late filing penalties and interest if you owe. We’ve had audits where the auditor held the audit open and wasn’t going to close it until the taxpayer filed their return! It’s a judgment call. That’s another reason to hire a CPA firm to represent you.
Auditor Is Being Unreasonable, What Are My Options?
You need unlimited patience an audit by IRS. If you are being as nice as you can and still have problems, see if you can find wisdom within the free advice tab on our website. If you can’t resolve the issues then you can speak to the auditors manager. After that you can file an audit appeal. Lately, during 2010 and 2011 we have had to file more audit appeals than usual, due to the lack of training of the new auditors that were hired. Negotiations can sometimes seem unreasonable, even for us. So why would you want to do this alone or with someone inexperienced?