I was audited for 2016-2017 I used your services and and had to also turn to our senator and the TAS to resluve the case. After years of fighting our case was finally resolved just this lasst month. All penalities were removed and we did get a refund of 950. I have had this business for over 40 years, always profitable. Because of Covid the bottom fell out lasts year and the business, if I take everything, had a loss of just over 3,000 so personal funds and misc money helped cover it. My question is since I had this audit from before just finished up, are the chances much greater that I will be called out and audited once again? Final totals show a Fed refund of 612 and State owed of 594. Would think it would not be worth their trouble but I am nervous to say the least. Thanks
All you can is to submit an accurate and complete tax return. Certainly the IRS is overwhelmed and audit rate might well be less but no one can tell you with any certainty if you will be audited.
Thanks for response. Do have concerns but will go aheasd and submit. Reality is I didn't take all the expenses I could have.
Please note that by law, you are required to report all allowed expenses. You cannot omit to report some expenses. The reason is that this could make your net income larger and you could claim an undue earned income tax credit.
Please read this IRS FAQ for more information.