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Questions tagged [audit]

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Should one try an audit reconsideration alone or with a CPA?

If anyone is following my previous questions, I have a long saga of an audit that has gone foul. I hired a CPA to help me but in 8 months he was unable to get the audit sorted out for me. The CPA firm ...
Mr Monee's user avatar
  • 462
1 vote
2 answers
200 views

What are my options against an accountant who has botched an IRS audit?

About 8 months ago, I asked on this list what to do when I received a notice from the IRS that I was being audited but I only got the paperwork 2 weeks after the deadline to reply. I was advised to ...
Mr Monee's user avatar
  • 462
0 votes
1 answer
120 views

Tax liability for non-US person living outside of the US for US-source income

My situation is as follows: In 2017 I've received an ~$18k income from US sources while living in Ireland (also I'm not a US citizen and was not a US resident at that time). I have moved to US since (...
Stvad's user avatar
  • 101
2 votes
1 answer
96 views

US Federal Income Tax: Any tactic that will reduce probability of audit when Deductions are greater than AGI?

For 2021, my charitable deductions are considerably greater than my AGI, reducing my tax owed to zero or a relatively small number. Is there a tactic that will reduce the likelihood that this will ...
ab2's user avatar
  • 1,900
2 votes
0 answers
97 views

Does a delayed refund suggest that an audit is likely?

My US federal tax refund is taking an unusually long time to be issued this year. I e-filed my return 3.5 months ago and the IRS Refund Status page just says it is "still being processed". ...
Nate Eldredge's user avatar
1 vote
2 answers
501 views

Schedule 1, Other Income: How to override in TurboTax

I have other income that is listed on Schedule 1. Schedule 1 Form line 8 state list type and amount. Turbo Tax enters "other income 1099-misc". I want to override the text and put my text in ...
paulj's user avatar
  • 1,157
5 votes
2 answers
558 views

How does the IRS expect HSA "receipts for medical expenses" to look in praxis?

When you reimburse yourself for medical expenses, you are required to keep 'records', to prove that the expenses were falling in the allowed medical cost classes. In case of an audit, you need to be ...
Aganju's user avatar
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1 vote
1 answer
78 views

Are IRS audits triggered and conducted for a specific year or a range of tax years?

Let's assume that I have filed my taxes for 2017, 2018, and 2019. If my 2018 tax return triggers an audit, will I be required to provide information regarding my 2017 or 2019 taxes / finances (...
IndividualThinker's user avatar
15 votes
3 answers
3k views

What does an IRS interview request entail when called in to verify expenses for a sole proprietor small business?

I received an IRS audit for the following: I had to call them within 10 days to confirm receiving the letter. And I've scheduled an appointment 2 weeks later. They basically said I just need to ...
Patoshi パトシ's user avatar
24 votes
1 answer
10k views

Why would the IRS ask for birth certificates or even audit a small tax return?

My daughter and her boyfriend live together, and he is the sole earner in the home. They each have a kid plus 1 together. H&R Block told them that he didn't make enough to do his return and now ...
Jen's user avatar
  • 257
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0 answers
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How to compute the "Total Adjustment Requested" when filing a dispute following a tax audit from Massachusetts?

I got audited by the state of Massachusetts, USA, due to a mistake I did when filing my 2015 Form 1 (mirror). The audit's conclusion was that I have to pay 1000 USD to Massachusetts, and in addition ...
Franck Dernoncourt's user avatar
1 vote
0 answers
99 views

After checking a tax audit, Massachusetts is owing me some money: what interest should I claim?

I got audited by the state of Massachusetts, USA, due to a mistake I did when filing my 2015 Form 1 (mirror). The audit's conclusion was that I have to pay some amount to Massachusetts, which includes ...
Franck Dernoncourt's user avatar
1 vote
0 answers
79 views

Goverment shutdown and the effect it would have on my current audit from where I filed my 2017 taxes in 2018

My husband and I were audited last tax season. We had been working with the IRS all year providing them everything they needed to prove our return was legitimate. About December 15th the take action ...
Ashleigh's user avatar
1 vote
1 answer
237 views

What does “going concern” mean?

A local politician is spreading demeaning comments about a company that has its accounts done using a “going concern” basis. My understanding is that this just means that it is assumed that the ...
Peter K.'s user avatar
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5 votes
1 answer
1k views

During an IRS tax audit, are credit card charges without a receipt a valid proof of expense, or do you need a physical copy?

I'm contemplating if I should save my paper receipts or not. I charge everything to my business credit card. During an IRS audit, can you claim a credit card charge as a legal operating expense or ...
Patoshi パトシ's user avatar
4 votes
3 answers
4k views

Will the IRS ask for birth certificate and Social Security card of your dependents during a random audit?

If IRS does a random audit, will they ask for a birth certificate and Social Security card of your dependents, or does that mean they suspect something?
Dianne Wells's user avatar
5 votes
1 answer
221 views

Can I expect that an IRS audit will stick to specific questions?

According to an informational web page on the IRS's web site, when they conduct an audit, they will ask for a specific document and (presumably) ask specific questions relating to that document. Can ...
Five Bagger's user avatar
  • 9,785
3 votes
1 answer
58 views

Should I keep copies of my business's invoices for tax records?

As a sole proprietor in the U.S., is there a good reason to keep copies of the invoices issued to my clients? I do not personally benefit from invoices after they are paid. But is there any situation,...
user avatar
5 votes
1 answer
235 views

Are people who file their taxes correctly, still subjected to being randomly audited?

It is known that the IRS generally audits tax returns based on discrepancies, but are people (including those who file correctly) still subjected to being randomly audited? The National Research ...
Narcotixs's user avatar
  • 150
5 votes
1 answer
1k views

Foreign governments get access to details of bank account balances?

I have heard a rumor that due to the upcoming Common Reporting Standard the details of bank accounts, including all transactions, will be reported all around the industrialized world and want to know ...
Five Bagger's user avatar
  • 9,785
6 votes
2 answers
1k views

HSA distributions and tracking receipts

During a presentation regarding HSAs I was informed the IRS can audit one for an indefinite period of time. The presenter suggested we keep records of our claims for 10+ years in paper form. This ...
ngnewb's user avatar
  • 149
3 votes
1 answer
283 views

Real estate AML exemptions — how does unreported cash purchase survive an audit? [closed]

In the United States, real estate maintains an exemption from anti-money laundering (AML) statutes. Hence, it is possible to purchase a property via large cash transactions without reporting to a ...
CQM's user avatar
  • 20.2k
5 votes
1 answer
304 views

Closing business bank account. What records should I download from my bank for record keeping?

We are about to close our small business bank account. I need advice on what information I should download from online-banking before I actually close the old account. I imagine that getting these ...
john1234's user avatar
  • 637
2 votes
1 answer
120 views

How to chose EA or CPA to represent me in FTB audit (small business)?

I am considering to hire a EA or CPA to represent my small business during FTB audit. So what exactly to look for when hiring someone that would represent you in FTB case? Some criteria that comes ...
john1234's user avatar
  • 637
2 votes
1 answer
103 views

FTB sent refund check for 2011 during audit; Does this really mean that whole audit is over for 2011?

Our business was under audit by FTB for Tax Year 2011. Few months ago we sent them corrected Tax return for Tax Year 2011. And, finally, yesterday we received check with refund. The refund is less ...
john1234's user avatar
  • 637
3 votes
0 answers
112 views

If my business is under FTB audit, can I close my old bank account?

We plan to switch from Bank A to Bank B and we are currently under Franchise Tax Board audit. We also recently realized that account in Bank A is with outdated EIN that we forgot to update to SSN when ...
john1234's user avatar
  • 637
0 votes
1 answer
193 views

Why does IRS propose to add in 1099-MISC income I already reported on Schedule C?

I received several 1099-MISC and reported this income on line 1 of Schedule C plus a bit more for which I did not receive any 1099-MISC. Now I'm getting a letter from the IRS proposing to change my ...
WilliamKF's user avatar
  • 1,823
2 votes
1 answer
111 views

Are there any guidelines for having a low risk of getting audited by IRS? [duplicate]

I know the question might be too broad. But maybe top 5-10 guidelines will suffice.
Learner_101's user avatar
2 votes
1 answer
286 views

Lost receipts in move... what if I'm audited?

I just moved and somehow the box of receipts I use to document expenses in case of an IRS audit was lost. I have looked and looked, but it's gone. I have no reason to believe I will be audited, but ...
Fixee's user avatar
  • 4,516
0 votes
1 answer
111 views

Can I avoid an audit by submitting documents early?

I make a lot of charitable donations every year (I donate 10% of my net income to my church), lots of people in my church get audited every year. Is there a way I can avoid getting audited by just ...
ShemSeger's user avatar
  • 115
7 votes
1 answer
6k views

What scrutiny to expect if making large purchase with physical cash? [duplicate]

I tried googling this but most answers that came up were regarding "cash" as bank deposits that a check is normally issued against. Not "cash-cash" or physical cash, as a bunch of bank notes. Say ...
amphibient's user avatar
  • 1,047
1 vote
1 answer
502 views

How do I get audited in India and what happens after that?

I have not filed my tax returns for 5 years. However I have a few FD's in my name and I was wondering what would happen if I were to get audited and how do these audits take place. In the bank they ...
user17603's user avatar
6 votes
1 answer
5k views

When does the IRS generally decide whether or not to audit your tax return?

I've never been audited by the IRS, but I was just curious if the fact that I received my tax refund in any way indicates that I am less likely to be audited this year. My presumptive theory is that ...
JohnFx's user avatar
  • 53k
28 votes
6 answers
120k views

Found an old un-cashed paycheck. How long is it good for? What to do if it's expired?

I just found a paycheck from my old work that is dated August 5th, 2013. It's for over $300 and I'm wondering if it will still go through. I'm worried that it will bounce or there will be some issue ...
Collinux's user avatar
  • 383
12 votes
4 answers
59k views

If someone gives me cash legally, can my deposit trigger an audit for them?

I understand that making a large cash deposit can trigger an IRS audit. I have about $75K to deposit. It's a mix of a loan I made to a friend by check that he paid back in cash, and a cash gift from ...
Square Pants's user avatar
6 votes
1 answer
3k views

How do banks prevent fraud in international wire transfers?

How does the international banking system prevent fraud in wire transfers? Specifically suppose a wire transfer from a bank in China to a bank in the United States is done. How does the bank in the ...
user782220's user avatar
5 votes
1 answer
2k views

How to dispute a balance transfer that never posted with other creditor?

Three months ago, I did a credit union credit card balance transfer at 0% to pay down three student PLUS loans. In the payments, the account number and sequence number for the three loans were given. ...
WilliamKF's user avatar
  • 1,823
4 votes
2 answers
14k views

Is it necessary to file taxes if you've made less than $15,000 for the year?

I'm asking on behalf of a friend, who, last year, worked 5 weeks through a temporary placement agency earning ~$400/week after taxes (~$550/week before taxes), and also worked 6 months at an ...
Andrew Cheong's user avatar
8 votes
1 answer
861 views

Which side has burden of proof to reopen a US income tax return after three years?

This came out of a discussion with someone over how long to keep returns and backup documentation... As (layman) I understand it, in the first three years the IRS can go after a return for any reason....
QuantumMechanic's user avatar
9 votes
2 answers
659 views

What increases your chance of being audited?

What increases your chances of being audited? Having a home office? Small business? what decreases your chances? Does hiring an accountant do your taxes makes it look more credible to IRS agents?
Vitalik's user avatar
  • 5,473
14 votes
1 answer
770 views

If I were to get audited, what would I need?

I've been an independent contractor for about 2 months now. I'm saving receipts for all my business-related expenses, and I use Mint.com to track all my personal finances -- Everything business ...
linkedlinked's user avatar
  • 1,190