Being audtited by the irs

thrasherfox

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Ok, so I received a letter (actually two) on Saturday stating my 2004 return was being "reviewed" and I needed to respond on or before June 6th (like 3 days notice)

So I called on Saturday, left a message stating I received the notice and would call back Monday

I call back Monday and talk to the Lady and SHE schedules an appointment when SHE is available to come to my house.

Anyway, right off the bat I start feeling like I am being pushed around.

While I have no concerns with my audit (I.E. I have proof of all my deductions)

I have been burned by the State of California (DA’s office, family support division) before, in the tune of around $6000.00 and when I went to numerous attorney’s they all said that yes I was being screwed but they would not take the case.

To express how screwed I was, my ex wife got off welfare and went to an attorney to help me fight the DA’s office.

Bottom line, I have been screwed by the State before, everyone admitted I was getting screwed and there was nothing I could do about it.

Talking to this lady on the phone yesterday made me start twitching with flash backs on how the government can screw you when they want and there is nothing you can do about it.


I have used Turbo tax for the last 6 years for my taxes, they have an audit defense that I purchased and in case of an audit they are supposed to act on your behalf, so one of my first phone calls today is to them.



My questions to the board:

1) Does anyone have any advice about IRS audits? Are the agents pretty honest and will they do there job professionally? Or will they just screw you anyway they can to get money back for the state?

2) Anyone know what they can legally do and what they cant legally do? (can they just assume they can come in my house, make me take time off work, what are the limits to what they can do legally? )

3) Is using Audit Defense or some other kind of legal representation the smart thing to do? Or does it really not matter as long as I have all my ducks in a row and my returns are legit (which they are)



Advice?

Good experiences?

Bad experiences?

Should I move to Canada now?
 
Damn Ron...no advice having never gone through this, but I am sorry to hear that you're gearing up for another battle
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Canada's nice this time of year, plus RSD could use someone to drive him around
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Ron -
SHRED EVERYTHING! j/k. Are you being audited for state or federal taxes?
 
You need to call a tax attorney as soon as you can. Don't wait.



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I did not get audited by the IRS, but they came out and told me I owed them about $6,600.00 from back taxes when I was getting paid as a contracted worker for about 6 months (via company check, direct deposit, personal check, expense re-imbursement).
I paid taxes that year but there was a discrepency between what I got paid and what was filed by the company paying me. At the time I received the notice the company no longer existed!

In conclusion, it wasn't worth fighting the IRS. They seemed to have their bases covered. What am I going to do call them liars, say "no you're wrong" or FU I'm not paying that amount? A lawyer would have put me in the hole more and put a red flag to my name for years to come.

I set up a payment plan and just got it paid off earlier this year. Pay your taxes "correctly" everyone. That's my advice.
 
KY Jelly, Knee Pads.... You know the rest.

Honestly, sounds like a pretty standard audit. Remember the IRS had it's nuts cut off a few years ago for some of their practices so I would expect things to go smoothly especially if you have reciepts.

I'd be screwed, I don't have any fuggin reciepts but what can you do. Personally I'd prolly talk to your attorney first and make certain things go smoothly.
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Ron -
SHRED EVERYTHING!  j/k.  Are you being audited for state or federal taxes?
Federal I guess...


I contacted the place where I paid for tax audit protection.

but I only paid for 2005, that was $39.00

Any additonal years that I didnt pay for I can pay for but. if it is a review, it is $150.00 per year that is reviewed aside from 2005.

If it is an actualy audit, it is $1000.00 per year that is being audited (aside from 2005)

I have all my ducks in a row but I just keep thinking about how I dont trust the government lol

I work for them, but I dont trust them to be honest lol



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I'd recommend pulling all of your guns out and start cleaning them when the person shows up. When they ask for reciepts dont say a word just point with an empty stare at the box. Then pretend like you are talking to invisible ppl, keep saying "No, I cant kill them, it wouldn't be right. Stop asking me to kill them. Please dont make me kill them. The audit should conclude about a minute or so after the 3rd "Conversation".
 
Oh yea and make sure to wallpaper your restroom with pictures of dead ppl.  

Also keep repeatedly asking if they want some Kool-Aid...That should help speed up the process.



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I went through this some years ago.

Best advice I can give you:

DO NOT TALK TO THE IRS. ...repeat... DO NOT TALK TO THE IRS

get a tax attorney. now.

My CPA handled the whole thing - he's dealt with them before and knew what to say and when to say it. I never talked to them and ended up writing a check that was a tiny percentage of what they originally said that I owed. That was a good day.
 
I went through this some years ago.

Best advice I can give you:

DO NOT TALK TO THE IRS. ...repeat... DO NOT TALK TO THE IRS

get a tax attorney. now.

My CPA handled the whole thing - he's dealt with them before and knew what to say and when to say it. I never talked to them and ended up writing a check that was a tiny percentage of what they originally said that I owed. That was a good day.
+1 That's what my Uncle did when the IRS came calling.

Mostly the Tax attorneys are there to make certain everyone plays by the rules and there are no misunderstandings. Don't under estimate the piece of mind a good attorney can provide. Seriously.
 
Maybe that $5000 1099 the captain sent on for Forum Moderator Salary is what is raising a flag.. Should have claimed it!
 
T-Fox, trust me on this one. Do NOT deal with them yourself and do NOT allow a CPA to handle it. Get on the phone with a tax attorney NOW and read or fax him the letter. An attorney has attorney-client privilege and does NOT have to tell the auditor anything you don't want her to know. A CPA and you do not have that luxury.

Trust me, it's worth paying for, bro. Don't try to do this yourself or you will get screwed.

--Wag--
 
T-Fox, trust me on this one.  Do NOT deal with them yourself and do NOT allow a CPA to handle it.  Get on the phone with a tax attorney NOW and read or fax him the letter.  An attorney has attorney-client privilege and does NOT have to tell the auditor anything you don't want her to know.  A CPA and you do not have that luxury.

Trust me, it's worth paying for, bro.  Don't try to do this yourself or you will get screwed.

--Wag--
+1000000000000000 I think my wifes firm just ate one in California... I can ask if they do Tax defense for the little people or if they only work with big business... Either way she might be able to have an attorney in CA get a good referral.
E
 
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