Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Main Boards => Gossip & Opinions => Topic started by: steamboatwillie on December 10, 2012, 11:07:45 AM
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So I just received a letter from my state's department of revenue saying they'd like to go over my 2009, 2010, and 2011 tax returns. How bad is this going to be? Are they seriously going to nit-pick every deduction I took?
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If you own a business and that's what it's for, you're probably in trouble. I don't know anyone who got away scott free.
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Just personal, but I did take advantage of a large number of mileage and work related expenses, as well as charitable contributions....some of which may have been slightly exaggerated. I figure I will start whipping up log books and receipts, and delay this thing as long as I can. I'm sure whatever they find will be handed over to the IRS and then it will be real ugly.
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Don't handle it yourself. Go through a CPA.
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Will a CPA go for me so I don't have to show up...like a lawyer and a traffic ticket?
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They will go through every fucking square inch. These people get paid just to do that. No lives. Who did your taxes? What is odd on them that would have caused an audit?
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Don't handle it yourself. Go through a CPA.
Agree with Chimps.
I had a tricky year with business consulting, work in different countries, etc...I had two different ACCT firms do my taxes - one for each country.
I owed a little over $30K. Paid it, and of course, was audited because it was higher than normal. The gov't sees a big change (up or down) and they figure you're hiding something. Triggers the system to flag you.
So I got audited, and the partner at my ACCT firm sent the gov't a letterhead document saying he vouched and signed the tax return files. Not only did the gov't go away, but I got an extra $3K back due to filing conservatively (which my accountant and I agreed upon beforehand, so we had ammo to fire back at the gov't in case they came hunting, which we knew they would do. I wouldn't normally file conservatively...why give the gov't your money to sit on).
By the way, don't hire Joe Accountant who works out of his basement firm. Hire a decent reputable firm. Reptuation goes a long way. Some junior auditor fuckpiece isn't going to want to tangle with a sizeable firm...the paper gets long and it gets dragged out and kills the auditor's closing metrics. It helps to have a big dog in a big fight.
Depends here on how much you tried the fuck the government for. A grand or two? Pay up you cheap bastard. But if this is a 5 or 6 figure tax bill, get a decent accounting firm on it and get your shit together. Then hold on for your life and prepare to put future expenses on hold until you know you've been cleared.
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I have a CPA for my business, and he's great. Keeps me in check. You have to if you don't want to get raped when you get audited. He always tells me, " I can say anything as long as you can justify why you bought what you did, but you are the one who gets in trouble, not me." This was when I asked if I could get a boat, and say it was for land speculation and maybe a bulkhead division of my business. Needless to say, I didn't get it, yet... ;D
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theta 6
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I was audited in 2009. For the most part, I was fine. They even went as far as asking for proof of my floor plan as I was using my home office for business and was deducting a portion of my household utilities as expenses, based on the sq foot of my office space. They came back asking for proof of floor plan. When they audit, they will audit every last detail.
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Yes one time earlier this year for a mistake in my 2010 taxes regarding some bond sales. Got a CPA tax consultant for $100 she took care of everything, didn't have to pay anything extra or any late fees, just sent an explanation of the discrepancy!
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So I just received a letter from my state's department of revenue saying they'd like to go over my 2009, 2010, and 2011 tax returns. How bad is this going to be? Are they seriously going to nit-pick every deduction I took?
What state? Usually, a spot-check is only 1 year and until you know what they're interested in, I can't really tell you how detailed it would be. They might be able to do it by telephone or by letter.
Don't worry about the IRS. State investigations are worse, IMO. The state grabs what info it can from the IRS, not the other way around, and the state can get a lien on your assets much more quickly without going to court.
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All Taxation is Theft - Josiah Warren
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nope
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yes, it sucks.
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What state? Usually, a spot-check is only 1 year and until you know what they're interested in, I can't really tell you how detailed it would be. They might be able to do it by telephone or by letter.
Don't worry about the IRS. State investigations are worse, IMO. The state grabs what info it can from the IRS, not the other way around, and the state can get a lien on your assets much more quickly without going to court.
NC...the letter said they wanted to schedule an appointment with me. I have exchanged a couple voicemails with the auditor, but haven't set anything up yet.