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I assisted with my first IRS audit last fall (early November, IIRC)....Relax it was for a client, not me (at least not me personally), in fact it was the client of the former awesome GM, A. I did the calculations for that return and scanned the docs into his file.
Well Y, the client, got audited. For his return, he submitted a year's worth of bank statements for the business. Fair enough.
I recreated my calculations and marked the transaction for the type of expense in question.
Well that wasn't detailed or specific enough for this auditor and she wanted expenses
. Which does make some sense. There were transactions for Bent Staple: Were they business supplies or school supplies for the kids https://www.youtube.com/watch?v=dyfqvrx9Jx0 ?
The auditor gave Y a month to compile verifiable records (read receipts) and mileage logs for his vehicles.
Dissolve to today, Y sent some materials to A, who ceased to work for mega tax chain by then. One email got to me, as this was not my client, I forwarded to Regional.
Got back from assisting with that nonsense earlier today. Apparently Y did not submit any new records but for past 6 months had been re-submitting the same
records which had already been submitted and scanned during the face-to-face session....and declared inadequate
. I counted 4 resubmittals of the same docs
(I would be concerned about annoying the auditor)
S, the new contact for this nonsense (not to be confused with S, the new member of my crew), spoke with Y and I overheard her say that if you have 20000 pages of original materials they will be submitted.
Let's see how it goes. I told S that I wouldn't bet the mortgage money that she sees anything different.
S told me she would keep me posted about this.
Well Y, the client, got audited. For his return, he submitted a year's worth of bank statements for the business. Fair enough.
I recreated my calculations and marked the transaction for the type of expense in question.
Well that wasn't detailed or specific enough for this auditor and she wanted expenses
. Which does make some sense. There were transactions for Bent Staple: Were they business supplies or school supplies for the kids https://www.youtube.com/watch?v=dyfqvrx9Jx0 ?The auditor gave Y a month to compile verifiable records (read receipts) and mileage logs for his vehicles.
Dissolve to today, Y sent some materials to A, who ceased to work for mega tax chain by then. One email got to me, as this was not my client, I forwarded to Regional.
Got back from assisting with that nonsense earlier today. Apparently Y did not submit any new records but for past 6 months had been re-submitting the same
records which had already been submitted and scanned during the face-to-face session....and declared inadequate. I counted 4 resubmittals of the same docs (I would be concerned about annoying the auditor)S, the new contact for this nonsense (not to be confused with S, the new member of my crew), spoke with Y and I overheard her say that if you have 20000 pages of original materials they will be submitted.
Let's see how it goes. I told S that I wouldn't bet the mortgage money that she sees anything different.
S told me she would keep me posted about this.
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