March Madness
Wednesday, March 3rd, 2010 | tax
One of our CPAs is a member of a local service club. She heard from another member about someone who received an audit notice from the IRS. He knew his return was correct and he had nothing to hide, so he took ALL of his records to the auditor. The auditor thanked him and said he would contact him in a couple of weeks.
Two months later the auditor called and asked for documentation for certain expenses. The taxpayer told him he already had sent that documentation, but the auditor said he did not, please send the records. The auditor would not admit this, but he had lost the records. What is worse, the taxpayer had given the auditor the original documents instead of copies. So now, the taxpayer is faced with the task of proving items on his tax return by reconstructing the documentation that the auditor lost. It’s a nightmare that’s causing his own version of March Madness.
It’s a cautionary, but true, tale to remind you to keep your originals, and engage a pro to represent you before the IRS.
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