sanmar
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posted on April 30, 2004 06:13:30 PM new
Has anyone been audited by the IRS? I talked to some friends today. They were audited yesterday. I think it it was because they also have a booth in an antique mall.
[ edited by sanmar on Apr 30, 2004 06:14 PM ]
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cblev65252
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posted on April 30, 2004 06:27:32 PM new
Most of the time it's the luck of the draw. Sometimes they notice suspicious deductions. My boyfriend was audited last year because his employer was audited and the employers records were way off. So, my boyfriend's were off as well and he owes the IRS tons of money. I don't think the boothes have anything to do with it, but I could be wrong.
Cheryl
http://www.kcskorner.com
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stopwhining
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posted on May 1, 2004 05:34:40 AM new
sanmar,
does your friend sell on ebay??
IRS can ask ebay for his records.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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davebraun
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posted on May 1, 2004 10:39:45 AM new
Yes, I have. Generally the IRS with the exception of random audits which are statistically rare focus on various industries at any given time. ie. Restaurants, Flea Markets, Various Sales Venues (including Antique Malls). The common thread of these industries is that there is the potential for cash under the table.
Nolo press has a good book on preparing for an audit.
Although I found it stressful in the end my auditor was fair and did nothing more than her job. I suppose you can draw the auditor from hell but I did not.
Friends don't let friends vote Republican!
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sanmar
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posted on May 1, 2004 12:15:46 PM new
Yes, they sell on eBay too. They have kept detailed records & came out smellin like a rose.
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paws4God
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posted on May 1, 2004 01:13:08 PM new
I was audited several years ago and it was a pain gathering all the records. It was for the year I got remarried so I had to get his records, my records and our records. I had a business I had sold and threw out a lot of things thinking I would never need them....stupid, stupid, stupid! Anyway after all that panic and worrying the auditor just looked at two things. He wanted to know why the total of my deposits were different from the amount I claimed as income that year. My brother had given me very generous birthday and Christmas checks and my clients had given me a wedding shower with many giving checks. I always had to deposit the checks to help pay for heavy medical expenses. The auditor told me to always write on the deposit slip if it was a gift. We ended up having to pay an additional $750 with interest!
Just make sure your deposits are the same as claimed income. I think the reason we were audited was there was such a sudden change (drop) in income.
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stopwhining
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posted on May 1, 2004 01:41:21 PM new
total deposits do not have to be the same as claimed income.just because you deposit cash or check,it does not mean you have earned it.
it could be a return of capital.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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aintrichyet
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posted on May 1, 2004 01:44:41 PM new
'return of capital' OR 'gift' ... either way they can check the microfilms of the financial instrument deposited to see if what you're saying is what it looks like.
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stopwhining
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posted on May 1, 2004 04:17:30 PM new
microfilm or microfiche will tell you nothing if it is a return of capital,it has to come from the issuer.
if you have invested in master limited partnership ,you will get a packet at the end of their fiscal year for tax purpose outlining how much distribution is a return of capital.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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sparkz
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posted on May 1, 2004 04:41:48 PM new
I wouldn't worry about it Sanmar. It's my understanding that this year they are only targeting large (500 or more feedback) Ebay sellers on the West coast who sell primarily fine china.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
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ebayvet
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posted on May 1, 2004 04:52:43 PM new
I wasn't audited, but last week I had a letter from the IRS - I thought it was an audit, turns out there was an error in my returns and they wanted about $1000 more - ouch! At least it wasn't an audit though.
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OhMsLucy
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posted on May 1, 2004 04:59:44 PM new
Sparkz...
Lucy
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aintrichyet
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posted on May 1, 2004 05:31:24 PM new
OUCH is RIGHT ebayvet ...
sparkz.. shame on you .. hush now. lol
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sparkz
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posted on May 1, 2004 05:57:59 PM new
Last year, about the 18th of May, the same day that a valve in a toilet broke and flooded our house ruining all the carpet, I received a notice from the IRS that I owed them a few dollars short of $10,000.00. It was due to a screwed up 1099 from a tenant who leases some commercial property from me. Luckily my accountant had copies of all the records I needed and helped procure a corrected 1099, as everything I had was packed in boxes and stored while the carpet was being removed. We sent all the info to the IRS and crossed our fingers hoping it was sufficient to satisfy them. To compound the problems, we were having a heat wave during part of this period and it was near 100 degrees on several of these days. Ironically, on the day the carpet layers were installing the final patr of the carpeting, I received a notice from them that they had reversed all the charges and I owed them nothing.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
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stopwhining
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posted on May 1, 2004 06:24:36 PM new
should have hired a FENG SUI man !!
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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stonecold613
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posted on May 1, 2004 09:51:22 PM new
When you receive an audit notice, you have the right to ask them which part of your return is being audited. They cannot respond, "All of it." At that point they must tell exactly which part is being audited and most of the time things can be done through the mail. So if you get a notice, always respond back asking the IRS which item is being audited. You will be glad you did.
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stopwhining
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posted on May 2, 2004 06:22:53 AM new
good advice,stone.
if they ever come to my house for a home audit .i will make sure i move the tv set from my home office to my bedroom!!
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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