IRS and bankruptcy (and a question)

[goingcrzy]

Is it me, or does it seem that the IRS takes a pretty good look at bk filer's past taxes? Since being discharged I feel like I am under a microscope from the IRS - perhaps the UST is bitter that she lost her case

I just got "looked at" a second time and the IRS wants me to come in for an appointment to discuss my mortgage interest. Since it is so straight forward, I am a bit paranoid about them wanting to look at more than my mortgage interest since I am self employed.

Anyone go on an IRS interview at their office. Should I be looking to hire a tax attorney - or is this really no big deal?

[angles]

i dont understand what they are trying to find?

[Flamingo]

It doesn't matter if one is in BK, filed BK or did not file BK. If something raises a red flag as to the information you submitted for your taxes to the IRS, you will be contacted. If all the information you submitted to them is correct and nothing was "fudged," you will be fine. Did you do your taxes yourself? If not and you had a CPA do your taxes, the heat is on them. If you did your taxes yourself and if you suspect there might be issues as to what you submitted, go see a tax attorney.

[goingcrzy]

I had a CPA do them for the year in question. Of course he won't return my call.

Angles I am not sure what they are trying to find either. From the info that was requested, it looks like they want to see canceled checks to prove I paid my mortgage that year. (which is wonderful, since I bk'd the bank and they won't give me the time of day either) I guess the tax forms from the mortgage company are not enough? And that I didn't get kicked out of my house?

This is why I am nervous and wonder if I should hire a tax attorney. I can't figure out why the IRS has an issue with my mortgage interest. Perhaps they want to get me there and then drill me.

[goingcrzy]

It doesn't matter if one is in BK, filed BK or did not file BK. If something raises a red flag as to the information you submitted for your taxes to the IRS, you will be contacted. If all the information you submitted to them is correct and nothing was "fudged," you will be fine. Did you do your taxes yourself? If not and you had a CPA do your taxes, the heat is on them. If you did your taxes yourself and if you suspect there might be issues as to what you submitted, go see a tax attorney.

I was wondering if it did mater or not. Seems like a large proportion of bk filers on the board get looked at. I know the IRS says they don't have a preference, but this is the IRS afterall

[angles]

Could you find the information you need in your BK package, like your bank records?

[goingcrzy]

Could you find the information you need in your BK package, like your bank records?

Its for the year 2007 - we filed in 2009 and didn't need to provide 2007 statements, so I am out of luck.

Maybe I am paranoid and this is a walk in the park, after our battle with the UST I am still a bit shellshocked.

[LadyInTheRed]

Anyone go on an IRS interview at their office. Should I be looking to hire a tax attorney - or is this really no big deal?

This is why I am nervous and wonder if I should hire a tax attorney. I can't figure out why the IRS has an issue with my mortgage interest. Perhaps they want to get me there and then drill me.

I haven't been invovled in an income tax audit, but have participated in audits of estate tax returns my office prepared. I wouldn't bother hiring an attorney yet. Bring only documents that they ask you to bring. If they ask you about other things at the interview tell them you were focused only on the one issue and you would have to review your records before you can answer any other questions. If they push, tell them you don't want to comment on a return you filed 3 years ago until you can review your records on the issue they are questioning. Be a broken record if they persist. If you feel cornered or uncomfortable at any time you can get up and leave and ask that they make further inquiries in writing. Be polite and business like at all times.

Your bank should provide you with cancelled checks. Call or go into your branch and make the request. You may have to pay for the copies, but they shouldn't refuse just because you filed bankruptcy. If you can't get the cancelled checks before the appointment with the auditor, call the auditor and explain the delay and suggest you reschedule the meeting.

If anything on your return is inaccurate, you may want to consult with a tax lawyer before providing any information that is contrary to what is on your return.

[goingcrzy]

Thank you lady in the red!

(but no thank you for getting "Lady in Red" stuck in my head.

[Flamingo]

Since a CPA did your tax return for that year, that CPA is required to be with you if the IRS does an audit or wants to review your information. Your CPA signed your tax return as the preparer. If there was a mistake, it may have been on the part of the preparer, not you, if information was missed or miscalculated. Now is not the time to give excuses about "well, he won't return my call." You have the IRS to deal witih - get proactive and get ahold of the guy even if you have to go stand at his door. You need to talk to that CPA first before you do anything else. In the itnerim, you will need to glean and put together all required information and your bank cannot refuse you copies of past checks but you will have to pay for the copies. Doesn't matter if you included them in your BK filing or not.

Wringing hands and worrying does not get things done. It's hard to focus with the IRS looming but in this situatoin you gotta do what you gotta do. Best of luck.