Random IRS Audit

[CindyLou]

Anyone out there ever been subject to a random IRS audit? If so, how long before they announce that you are being audited?? Just curious. Thats one thing I really don't see much of on here is comments about taxes???

[lrprn]

Anyone out there ever been subject to a random IRS audit? If so, how long before they announce that you are being audited?? Just curious. Thats one thing I really don't see much of on here is comments about taxes???

We were randomly audited by the IRS about 20 years ago. We had to dig up mountains of documentation related to our tax return for that year (probably a lot like being questioned by the US Trustee in a bankruptcy case). Since my husband had done our taxes himself, we didn't have an accountant to help us, so we were a tad nervous going in. However, all ended up fine. The IRS examiner found a few things not in our favor but a few things in our favor too. Ended up being a wash and we didn't owe any extra...whew!

This website has a good explanation of what to expect during an IRS audit these days - http://www.lagreycpa.com/irs_q_a.htm .

I think we don't get many tax questions here in the forum because handling deliquent taxes in bankruptcy is so straightforward and clearly laid out.

Hope this helps!

[SinkingFast]

We were audited nearly 20 years ago.

I did/do our taxes all the time. We got notified to be prepared for an appointment up in February of 1989. We were being audited for Tax Year 1987.

We sold our house to a couple contingent on sale of their property. They needed to move in right away, so we agreed to rent the house to them. So we had rental income from our house. Then that sale deal fell thru and we wound up moving back into the house. Right after Hubby accepted a new job offer, we sold the house to another buyer. We moved for the new job, and had a child. All in the same year. The IRS found all that activity in one tax year a little too incredible to believe.

The letter we got told us exactly what the IRS was questioning. To bring documentation to confirm the areas in question.

We got a Lady auditor. She was very nice. She offered us coffee. The meeting was very casual and conversational. She jotted notes as we talked. We had proof for everything and there were no changes. She told us before we left everything was fine and said we'd get a letter to that effect in a month of so.

[CindyLou]

We sold our house to a couple contingent on sale of their property. They needed to move in right away, so we agreed to rent the house to them. So we had rental income from our house. Then that sale deal fell thru and we wound up moving back into the house. Right after Hubby accepted a new job offer, we sold the house to another buyer. We moved for the new job, and had a child. All in the same year. The IRS found all that activity in one tax year a little too incredible to believe.

whew...I need a nap after reading that paragrah!! That was a very busy year for you! Glad it all worked out!!

[AMISLANDER]

I haven't been audited...

...yet...but did get a tax bill for 2004 that's now at $8K...I have to fill out the paperwork & send a copy of my bankruptcy paperwork back to them...tried calling the IRS but can never get a human on the phone...

[Peevee]

We was audited this year. My wife and I both got a letter with a phone number to call. When you call they setup an appointment to visit you and the records you keep. I think we had 2 weeks to get our stuff together. My wife keeps excellent records and they found nothing wrong but it is definitely nerve racking to deal with it. If you have any transactions at the bank for over $1000 they really check into it.

[CindyLou]

for what tax year were you audited and when did you receive the notice???

[Peevee]

I received it in February of this year they wanted to see mainly 2004. They asked to be prepared to go back 5 years. They checked bank statements and most of the business receipts. We owned a business in 2004 that broke us and we ended up in bankruptcy.