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What do I do if I'm being audited by the ftb and don't have any proof or receipt for the income I'm claiming

 
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3 Replies
ErnieS0
Expert Alumni

What do I do if I'm being audited by the ftb and don't have any proof or receipt for the income I'm claiming

It depends on what type of income you had and how you made your money. Look for something anything that can help prove your income.

 

Do you have any kind of records? For example, if you deposited cash or checks into a bank account or online app, you might have monthly statements.

 

Can get a letter or confirmation from people who paid you confirming what they paid?

 

If you were running a business, do you have any receipts or records of supplies and expenses? That would show you spent at least that much money.

 

Lastly, the IRS sometimes uses a lifestyle audit when people don’t report income. You can use a similar argument to prove your income. Show how much it costs you to live each month. That means you’d have to make at least that much money to support yourself.

 

None of this is proof and the Franchise Tax Board may reject everything. But without receipts, you don’t have many options.

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What do I do if I'm being audited by the ftb and don't have any proof or receipt for the income I'm claiming

When you are self employed running your own business you must keep appropriate and  contemporaneous records like any other  business.  Records of the income and expenses you reported on your tax return can be questioned and the fed/state may ask to see them if they choose to audit the return.  Do your best to respond to the notice ... call them for more information if needed.  

HelenC12
Expert Alumni

What do I do if I'm being audited by the ftb and don't have any proof or receipt for the income I'm claiming

ErnieS0 and Critter-3 have very good suggestions and advise.

 

Addressing your letter as soon as you receive it could prevent further IRS contact or examination. Look in your IRS letter or notice, and select the corresponding number below for more information about what to do next.

 

CP Notices

Other common letters

If you don't see your notice listed here, go to IRS Notice or Letter page.

 

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