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Posts Tagged ‘IRS Audit’

If you are audited by the IRS, can you write off the cost incurred during the audit, such as bills from your cpa?

I’m a loan officer who is 1099′d. I am currently undergoing an IRS tax audit for the years of 2004 and 2005. I have probably paid my cpa in the neighborhood of thousands of dollars so far and I was just curious if I could write off this money as a business expense, or in some other way.

I have a small restaurant business.

Some of my previous tax returns were totally off. Gross sales and COGS were off by 110%, and lots of tax deductions were not included in the returns. This is a family business and my brother did the tax returns and totally screwed up. The old tax return paid the IRS nothing. With the amended returns, I’m going to be paying them something. The amended return numbers are pretty similar to my past returns.

I’m really paranoid because I’m afraid this might trigger an IRS audit on my business.

I had a message on my phone and so I called the 1-800 number on my voicemail, it answered the IRS. Evidently the IRS called me. Could it be that the IRS wants to audit me? Should I get a hold of a tax attorney? I think it is for real. I file my taxes every year, but sometimes I file late. I also heard of a lot of scams out there and some companies actually pretend to be the IRS. So, I cannot be sure if it was a hoax or the real IRS wanting to do something like get more information from me or possibly audit my tax returns. Can someone clarify? Thanks.

Question about IRS audit if I have a business and multiple bank accounts

I have a small business, I’m the only employee. I have business accounts at multiple banks. Sometimes, I withdraw money from one bank account and deposit some or all of it in another bank account. If I were to get audited by the IRS, how could the IRS claim I’m not reporting all of my income? How do they know what income I have really? I could just be depositing my own money and they would not be income at all.

What if I earned money and I deposit the check in one account. Then I withdraw it and I keep some money then I deposit the rest plus another check I earned, so it looks like I just moved the money from one bank to another. Oh, I’m not foolish enough to jack with the IRS, but I am curious about how it works. They wouldn’t be aware of the cash that I kept aside.

What are the normal and customary fee’s charged by a Tax Preparer during an IRS Tax Audit? Insurance was paid.

IRS determination was a no deficiency in income tax due but now we have to pay just about as much in Tax-Examination audit preparation & representation fees for professional services rendered. Originally, we paid the tax preparer an Insurance fee to represent us in the event of an IRS Audit.