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Business & farm
Don't make assumptions when you don't have all the facts. During the periods when I was audited, I was a struggling entrepreneur (bottom line income less than $10,000 per year). Not making a lot of money, living off savings, selling almost everything I owned to pay my bills. I had documentation for everything and kept detailed records of all transactions. I have no idea why they kept singling me out. The first two times I was audited (and I had representation all 3 times), the IRS auditor looked at all the documentation and returned a "verdict" of "no findings". But the 3rd time, the IRS auditor chose to deny a number of deductions (that had previously been approved in earlier audits). My representative told me that as these were a matter of opinion and as I was still struggling to make money (after several years), I would very likely lose if I appealed and that I risked having my business declared a hobby (even though I had no other means of support). So I was advised to pay the IRS and move on - particularly because I had no money or time to go through an appeals process. The total amount I had to pay was under $8,000. And I had to empty my Roth IRA to do it. To assume that the IRS only audits high income individuals is incorrect. The IRS audits anyone they want to - regardless of their net worth.