So, who's been audited?

Sorry for being off topic, but I needed to get it off my chest among friends... Got home to a lovely note from the IRS who wants to be my new best friend. Apparently, they are checking on our 2012 return. This was my first year as a business owner (hand was forced after being laid off), so there wasn't a whole lot of money there. I am confident that we were right in our calculations, but after I shut down shop most of my records went into a box. I am now in a bit of a panic digging through to find what they are asking for.

It is a bit demoralizing--the first year was incredibly difficult financially for my wife and I and it feels now that I am stuck reliving it. Sometimes it is hard to simply turn the page. Thank god for the little things that can recenter us on what is important--booze and tobacco. Oh, and family

Have never been audited but it sounds like a nightmare.

As your attorney I advise you to pack a BL LE pipe full of your favorite tobacco and find a comfortable chair.

Audited, awaiting their response which has been . . . years, actually. They will only postpone billing for so long but the staff who proices audits are backlogged by 6 months or more. I feel your pain! Good luck, blessings, and light to you.

Senshi said:

Have never been audited but it sounds like a nightmare.

As your attorney I advise you to pack a BL LE pipe full of your favorite tobacco and find a comfortable chair.

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Sage advice!

I was audited on my first year of business too (I claimed a loss). I'm an accountant by trade, so I was very confident in my numbers, and had kept great records, but still a concerning/daunting process.

Turned out fine in my case, but I can definitely appreciate your feelings. Not an enjoyable proposition...

It sounds like you're not officially being audited yet. I've had something similar, and I don't remember what it's called but it's a step short of auditing, you just give them the paperwork until they're satisfied and everything's cool. If they find mistakes they'll ask you to correct them and offer a payment plan if it costs too much -- or if the mistake is in your favor they'll write you a check.

An actual audit is worse, IIRC that's when they get court orders to follow up on the paperwork themselves and they might lock your accounts and stuff.

I've been in business for 13 years now and never been audited...thank goodness. But I do keep all records and have used an excellent local accountant from day one. Although it may be just a routine audit that snagged ya, you may want to talk to a local tax attorney...the IRS is not your friend.

WithTheGrain said:

Thank god for the little things that can recenter us on what is important--booze and tobacco. Oh, and family

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You got that right. I'm going to smoke a bowl of premium 'baccy, and have a select adult beverage, just to help assuage your trepidation.

Audited in the IRS sense, no. But I believe I am still under part of an ongoing, massive "internal review".

Nope. I employ an accountant have paid him dearly to "keep my unorganized butt" out of jail. I will never forget the first summer I ran the business. I walked with a question and the old guy said "Well, let's see if we can keep you out of jail". He is worth every penny we pay him.

I hope you get everything they want and the verdict is in your favor.

Whiskey Badger said:

Audited in the IRS sense, no. But I believe I am still under part of an ongoing, massive "internal review".

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That was what I was expecting this thread to be when I first saw the subject line.

simon1 said:

I've been in business for 13 years now and never been audited...thank goodness. But I do keep all records and have used an excellent local accountant from day one. Although it may be just a routine audit that snagged ya, you may want to talk to a local tax attorney...the IRS is not your friend.



You got that right. I'm going to smoke a bowl of premium 'baccy, and have a select adult beverage, just to help assuage your trepidation.

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I agree with everything posted here, etc. it is embarrassing to say, but I'm actually an attorney who does a decent my tax work. I'm confident my numbers, but it is still stressful. With that said, it is likely a routine check is in my conversation with the rep, but we'll see how it goes.

Thanks for the input guys, appriciated.

I've never been audited, but I have received some queries, so to speak. The others are right. Typically, it is a matter of getting in the supporting paperwork and hearing back from them at some time in the future with a bill, a check, or a "all good here" notice.

Being self-employed, you'll get more second looks than many others, so don't get too wound up about it. Just take a deep breath, send in what they need to see, and drive on.

I've been cracked twice by the IRS, both times due to the ex-wife. Both times I had the paperwork, and prevailed. But what a pain in the behind, and a year at least to finish. Stay the course, if you are innocent they eventually do fade into the night

I have been and it was an exhaustive nightmare and even still now they're screwing up stuff from it like not applying payments etc. Long story short they disallowed every deduction even though they were legitimate. My accountant said I'd win if I took them to court, but would spend more money to do so than just paying them.

ARGH

IRS=Gestapo