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Even More Change!

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  • Even More Change!

    Last year I had to go through a really tough IRS audit. Because we work out of State so often they scrutinize every single receipt. It got so bad I had to submit pictures of my trucks and us working out of them. It was the most ridiculous and obtrusive thing I have ever seen. It occupies a good amount of our time last year. The final outcome, they owed us money but I was told to eat it and they would leave us alone the following year.

    Fast forward a year and I just got the letter asking all of the same questions for 2008. My tax person contacted them and explained what we had just gone though and were told they would forward it to a supervisor and have it canceled. The supervisor called back and said more or less welcome to the new IRS.

    So now the IRS auditor will work a bunch of hours paid for by the tax payers. My tax person will work a bunch of hours paid for by me. We will have to work a ridiculous amount of hours that will cost me time which would be better spent trying to make a living.

    I have been self employed for thirty years. After 2-terms of Reagan, 1-term of Bush Sr., 2-terms of Clinton and 2-terms of Bush I was audited one time. Obama has only been President for two years and I am now two for two. Now that is change you can believe in.

    Mark
    "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

    I never lost a cent on the jobs I didn't get!

  • #2
    Re: Even More Change!

    Funny sort of thing that you should mention this today Mark.
    While we were waiting for the inspector this morning the homeowner was telling me his experience with the IRS he had yesterday.It was over a $10,000 dispute on meals and entertainment.He pays approx.$250,000 per year quarterly.
    His wife was level 13 IRS,so she knows the beaurocracy and accompanied her husband.
    She dropped auditors pants and spanked the crap out of him and his assistant.Homeowner said it was quite a turn on
    It is possible for an honest man to fight back.

    The waste of money?
    I am sorry a good man as yourself has to endure this.I can certanly appreciate your frustration.
    Our country is sick and too many don't want to take their medicine.

    Comment


    • #3
      Re: Even More Change!

      My guess is that your mistake was in not insisting that they cut you a check for your over payment. By not demanding your money back you planted the idea, albeit a false idea, in their little pea brains that you were hiding something and they missed it.
      Teach your kids about taxes..........eat 30 percent of their ice cream.

      Comment


      • #4
        Re: Even More Change!

        We also just found out a lot of this has to do with training the thousands on new IRS agents who were hired for the new Health Care Laws.

        Mark
        "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

        I never lost a cent on the jobs I didn't get!

        Comment


        • #5
          Re: Even More Change!

          There should be some sort of law that unless allegations of illegal actions are brought up you can only be audited only x amount of times within a certain 10 yr period.

          Then again that could also create problems....Hmmm

          I don't know what to tell you Mark, I am sorry to hear you have to go through this again!

          Comment


          • #6
            Re: Even More Change!

            This is how bad it is, they want to verify my income because we reported $XXX,012 in 1099s and they only show $XXX,999 worth of 1099s. So because I reported $13,000 over what they show they want me to prove where the extra $13,000 in 1099s came from.

            Mark
            "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

            I never lost a cent on the jobs I didn't get!

            Comment


            • #7
              Re: Even More Change!

              Tell them to clean up their own house first, before barging in on yours:
              http://www.masslive.com/news/index.s...t_for_87b.html

              Comment


              • #8
                Re: Even More Change!

                I can't think of a single thing that has gotten better! Just learned the term "naked trading" regarding some kind of stock fraud behavior. Seems the SEC refuses to prosecute these criminals and there is a multi trillion dollar lawsuit against them. Obama just got his multi billion dollar increase for war spending but I haven't heard anything about us going into iran or pakistan to stop the aid our enemy is getting. Arizona and the border states are still held hostage by our president until he gets his immigration reform.

                I'm voting straight republican next election, and my question is, what change will the republicans offer? Seriously, President Bush was real chummy with mexico's president vincente fox and did nothing to secure the borders. How can we trust or expect change when we keep getting lied to from both sides?

                Comment


                • #9
                  Re: Even More Change!

                  i guess my $55. permit parking ticket is not that bad after all.

                  if i lose, i should be able to write it off as a business expense too

                  aug. 18th is the hearing date, wish me luck

                  rick.
                  phoebe it is

                  Comment


                  • #10
                    Re: Even More Change!

                    In the past, IRS audits were always known to come in a series of two or three. Perhaps it was only in recent years that such needs were ignored.

                    Perhaps I'm under the wrong impression, but I'm of the understanding from my accountant that any expense encountered in preperation for audit was a deductable expense and in business, having not just an "accountant", but a good "Tax Accontant" was absolutely essential.

                    Many years ago I had my own business. It was during an almost three year layoff and was not something I really cared to adventure in. (Small guys working out of their garage as a freelance artist is not exactly a growth business.) As I'm sure you do, I took my responsibility to the IRS very seriously and got the right accountant. His first words to me was that "you have absolutely no responsibility to pay the government one more dime than they are asking for... and it is my job (the tax accountant) to make sure that you don't!"

                    There is no thing as "eating it" with the idea that they will leave you alone. You get audited and find that you overpaid, then they need to refund. (Actually, I don't comprehend how they could not pay up... as the audit should clearly show that you overpaid and they should have automatically processed your refund.)

                    In any case, I'm sorry to hear that you have to go through this and I fully understand your frustration. But, I don't think it's the fault of the current administration, but of course you are entitled to your opinion. But, I would give serious consideration to getting an accountant who specializes in taxation. You certainly don't deserve to go through this hassle even once; much less two or three times.

                    A good tax accountant would have ensured that nothing was even remotely questionable and accounting for 1099 issues should have been a simple matter of printing out a list and providing copies of the duplicates that you kept. Otherwise, if one of your payee's failed to file his 1099, then you'd be audited because of the mis-match.
                    Good luck,

                    CWS
                    Last edited by CWSmith; 07-28-2010, 12:03 PM.

                    Comment


                    • #11
                      Re: Even More Change!

                      Originally posted by CWSmith View Post
                      In the past, IRS audits were always known to come in a series of two or three. Perhaps it was only in recent years that such needs were ignored.

                      Perhaps I'm under the wrong impression, but I'm of the understanding from my accountant that any expense encountered in preperation for audit was a deductable expense and in business, having not just an "accountant", but a good "Tax Accontant" was absolutely essential.

                      Many years ago I had my own business. It was during an almost three year layoff and was not something I really cared to adventure in. (Small guys working out of their garage as a freelance artist is not exactly a growth business.) As I'm sure you do, I took my responsibility to the IRS very seriously and got the right accountant. His first words to me was that "you have absolutely no responsibility to pay the government one more dime than they are asking for... and it is my job (the tax accountant) to make sure that you don't!"

                      There is no thing as "eating it" with the idea that they will leave you alone. You get audited and find that you overpaid, then they need to refund. (Actually, I don't comprehend how they could not pay up... as the audit should clearly show that you overpaid and they should have automatically processed your refund.)

                      In any case, I'm sorry to hear that you have to go through this and I fully understand your frustration. But, I don't think it's the fault of the current administration, but of course you are entitled to your opinion. But, I would give serious consideration to getting an accountant who specializes in taxation. You certainly don't deserve to go through this hassle even once; much less two or three times.

                      A good tax accountant would have ensured that nothing was even remotely questionable and accounting for 1099 issues should have been a simple matter of printing out a list and providing copies of the duplicates that you kept. Otherwise, if one of your payee's failed to file his 1099, then you'd be audited because of the mis-match.
                      Good luck,

                      CWS
                      Actually, Rick talked to his Accountant about my audit and he also said they can't do back-to-back audits. I guess it's like the IRS supervisor said, welcome to the new IRS.

                      Mark
                      "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

                      I never lost a cent on the jobs I didn't get!

                      Comment


                      • #12
                        Re: Even More Change!

                        Maybe it's a regional thing... but if they "can't", then they are! (Grandma used to say there's no such thing as "can't".)

                        I recall that back in the 60's and 70's, "audits" were a big concern with local businesses here in NY's southern tier... especially small businesses and restaurants. (the latter was well known for keeping "double books".) I managed a small business back in the late 60's, early 70's was was told that the reason for back-to-back audits were that once a business got audited, they felt they were immune to further investigation. But, I never experienced an audit and perhaps I was misinformed.

                        I also recall that we went through a period where the IRS was being accused of persecution and I'm not sure if it was in 80's (I'm thinking that was the time period) or the early 90's there was some serious review of IRS practices and supposedly things were "lightened up".

                        Either way, an IRS audit leaves any of us with a deep concerns that they are being singled out and persecuted. I sure hope this goes quickly for you and it is nothing more that a minor paper check at this point.

                        Best wishes that this is quick and painless,

                        CWS
                        Last edited by CWSmith; 07-29-2010, 09:01 PM.

                        Comment


                        • #13
                          Re: Even More Change!

                          I like steak....Mmmmmm!!!!

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                          • #14
                            Re: Even More Change!

                            Dude looks hungry..........
                            I'm on "The List" and I love it!!

                            Comment


                            • #15
                              Re: Even More Change!

                              It's funny, on the interstate to S. L. Ut. the other day, someone hung a sign on a fence saying " Jesus saves " (written with a paint brush). I thought about hanging one next to it saying "Obama wants change"

                              Comment

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