Just Left a Face to Face IRS Audit

downloadToday I met with a friend and the IRS for a face to face audit of his 2011 personal and business taxes. The audit was at the IRS offices located at 290 Broadway in NYC. The meeting started at 11 am and ended at 1:30 pm. Again, he runs a business and they wanted an explanation of his business and his business expenses.

Here are the important takeaways from the audit:

* Don’t Panic

IRS employees are people too. Ours was pleasant and professional. She lives in Brooklyn, sends her son to a charter school and loves to garden. She even shared her skittles.

Her office neighbor’s ringtone of Lil Jon and Usher was pure comedy.https://www.youtube.com/watch?v=GxBSyx85Kp8

* KEEP ALL YOUR RECEIPTS/INVOICES/CANCELLED CHECKS

That is the most important take away. The more receipts/invoices/cancelled checks you have, the less you need to worry about an audit (They don’t want bank statements).

This also goes for people who itemized deductions on Schedule A for charities and medical expenses.

* Be Organized

The more organized you are, the faster everything goes and the easier the process. Software is helpful in explaining expenses but receipts are what they really want. Scanners and folders are worth the investment.

* Be able to explain your business in detail

The IRS wants to make sure the expenses you claim make sense for the business.

* Respond to an audit as soon as possible

Again, having the receipts makes the process so much easier.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

Advertisements

Author: TaxAssurances, LLC

Chex Balances is the blogsite of TaxAssurances, LLC, an independent financial services firm that provides expert advice and solutions in Accounting and Insurance. The site provides insightful and useful information around the reader's financial life. Information that helps them understand and navigate the financial details of everyday living.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s