Tag Archives: Audit

The Dreaded IRS Audit Notice

While we’re waiting for the TaxQuips Forum to go back up, today TaxMama® wants to discuss what to do when you get an IRS audit notice.

Audit Risk

Today TaxMama® hears from Hugh in the TaxQuips Forum with a long question. “To make his story short, he lays out his income and expenses and wants to know what his audit risk is – and what records to retain in case he’s ever audited.”

IRS sending letters to selected tax preparers

During the month of November the IRS is sending letters to more than 21,000 paid tax preparers who prepare a large number of Schedules A, C, and E. The letters, which are slightly threatening, are intended to remind tax preparers of the “consequences of filing incorrect returns and new tax return preparer requirements.” The IRS […]

Unclear on the Concept

Today TaxMama hears from Cliff in the TaxQuips Forum, who dropped the ball. “Filing your income tax return is due April 15th, or with an extension, 10/15. However, the instructions also say that you have three years (plus any extension) to file a claim for any refund due. Which rule takes precedence?  The IRS cannot […]

A Ridiculous Situation

Today TaxMama hears from MR in the TaxQuips Forum with a stupid problem.  “In the course of a personal audit, IRS made a routine request for an employer letter to verify that his education is not a minimum requirement of the job. MR’s boss at TSA is afraid to write the letter – and is […]

California FTB Audits – Guaranteed Income

TaxMama note:  The Franchise Tax Board is starting these audits of people who have been relieved of debt in one manner or another. Odds are, at least 30% – 40% of the audits will turn up errors, with taxes due. I bet that 10% – 15% will turn up errors in the taxpayers favor, where […]

Was Audited Should I file

Today TaxMama hears from Donna from Los Angeles in the TaxQuips Forum, with a good question. “I was recently audited for my personal taxes for 2007 and 2008. I appeared with the auditor for the closing meeting and the final amount was discussed two months ago; but I have not heard from her since and […]

DCAA audit requirements

Today TaxMama hears from Virginia in Maryland who wants to know. “Can QuickBooks be used for government contractors who need to meet DCAA audit requirements? If so, is there anything specific that needs to be done when setting up the chart of accounts to make it DCAA compliant?”

TaxMama’s Tax Quips and Audit No-Nos

Today TaxMama hears from a tax professional with a problem: “My client is being audited by IRS. I live in another state. She sent me the records and I asked IRS to move the audit to my state or to do it by phone. After she sends me the records AND after I ask IRS […]

Got IRS Refund – Won’t be Audited

Today TaxMama hears from Linda in Denver, with this wonderful question, “Is it safe to assume that you will not be audited if you receive the refund that due you?” Dear Linda, What an interesting perspective? IRS sends you a refund. And there will never be an audit of that year. I like it! If […]