Free Info – Killer Audits
The secrets are already listed on the topic pages of the site or under the “free advice” tab.
The secret is in the approach. When do you just bring support for only the items asked for, and when and how do you approach bringing in proof for all items? Usually we are prepared to support all items. This way, if asked for proof of other expenses or items not listed on the original audit letter, which usually is asked for, we will know how to answer.
Another secret is to pull the IRS records on wage and income information, so you will be prepared to answer why any items missed are not on the return.
The other secret is not to assume that because you have a receipt, that you have supported the expense. Business expenses are supported by a receipt (or other proof of payment), an invoice, and also showing the business purpose. The burden of proof will be on you to show that it was business and not personal, especially for items such as auto, cell phone, and computers. You also must show, although often not asked, that the expense was ordinary and necessary. Extraordinary expenses may be allowed under certain circumstances. Make sure you can answer these questions before meeting with an IRS auditor.
Don’t forget to read all the related topic pages on this site for more valuable information gathered over many years of case experience.
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