Getting Audited...

W

wicked1234

New member
Dec 22, 2007
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Alright,

So I've never been audited before... do you guys know where to find good CPAs that specialize in audits, especially if it's for a web business? Looking for one around the bay area.. Also if you guys have any suggestions that would be fantastic.
 


Oh and for advice don't take the IRS's auditers bs. You can appeal everything.

If they try to say thats not allowed, be like F you and prove that it is (if you have proof that is). They'll try to get as much money as they can out of you
 
I need a really good accountant, because my returns are messed up and unorganized, so I'm pretty screwed. Is there a place to look for good accountants that deals with stuff like this?
 
Fuck deductibles. I just send them 40% of my gross revenue and never hear from them. Works well.

/Joke.
 
My advice (if you don't have an accountant).

Ask your lawyer for an accountant.
Ask your new accountant for a book keeper.

It'll cost you like 4k to totally organize everything for you - or less. I've got it all streamlined and it's a mess owning a network... I started slacking (as quickbooks fucked up on us) and I hired a book keeper that cost me something like 2k to update EVERYTHING for my accountant.
 
tacoX said:
My advice (if you don't have an accountant).

Ask your lawyer for an accountant.
Ask your new accountant for a book keeper.

It'll cost you like 4k to totally organize everything for you - or less. I've got it all streamlined and it's a mess owning a network... I started slacking (as quickbooks fucked up on us) and I hired a book keeper that cost me something like 2k to update EVERYTHING for my accountant.
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The IRS auditors will organize everything for you in their own format / way. You don't need to have it done specially for them.

DONT sign any fucking paper until you have a tax attourney go over it. They will try and rape you.

Being audited really isn't that bad
 
Also, remember to be friendly, they are just doing their job. Their job to milk every penny they can out of you. But many will let things slide if your nice.

I just hand them raw bank statements, and let them have at it.

Never once have I had to a show receipt for business purchases as I keep everything seperate.
 
As someone that's represented client's in audit, I can tell you that organization makes revenue agents happy.

What did the audit notice request? There are several audit levels, some as minor as looking for substantiation of one specific line item.

DO NOT provide any information that is not specifically requested in the audit notice.
 
imincognita said:
As someone that's represented client's in audit, I can tell you that organization makes revenue agents happy.

What did the audit notice request? There are several audit levels, some as minor as looking for substantiation of one specific line item.

DO NOT provide any information that is not specifically requested in the audit notice.
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They requested all expenses for a year... fucked.
 
My advice, Get one of these:

vaseline.jpg
 
And if you don't mind - how are you classified? Sole proprietor? C-corp? S-corp? LLC? I always wonder if those Turbo Tax audit stats are true percentage-wise.

Never been audited over here - very big knock on wood, but hopefully you'll pull through successfully once you get things organized.
 
i'd reccoomend getting organized. pay what you have to to get your shit in line.

and watch out for the sneaky agents, they will try to get you at every angle.
 
Why people let themselves get audited is beyond me. If you are making coin, just hide your tracks.

Example:
Get paid through LLC 1. Pass all profits from LLC 1 to LLC 2 every year by way of a 1099. Have LLC 2 pass it on LLC 3. LLC can pass it on to an offshore company where you withdraw it all. Just hide ownership in those three LLCs which is relatively easy to do.

If you want to hide yourself and income even further, rent your apartment, buy your car, etc, etc in the name of one of your LLCs, and it could be one totally unrelated to the ones in the example.

Hell, why not create a circular company that no one is the owner of. Hiding is easy.
 
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ripsigg said:
Why people let themselves get audited is beyond me. If you are making coin, just hide your tracks.

Example:
Get paid through LLC 1. Pass all profits from LLC 1 to LLC 2 every year by way of a 1099. Have LLC 2 pass it on LLC 3. LLC can pass it on to an offshore company where you withdraw it all. Just hide ownership in those three LLCs which is relatively easy to do.

If you want to hide yourself and income even further, rent your apartment, buy your car, etc, etc in the name of one of your LLCs, and it could be one totally unrelated to the ones in the example.

Hell, why not create a circular company that no one is the owner of. Hiding is easy.
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This is beyond idiotic, and hopefully no one listens to you. The OP is actually fine, I bet he ends up settling it for no penalties and minimal interest for a small amount of the expenses w/out back-up.

However, if he would listen to you he'd be facing federal criminal charges. Use of sophisticated means is the first criteria used to determine whether to go criminal.

They'd uncover your silly scheme in a heartbeat. Everyone with offshore ATM's got fucked when IRS got smart and subpoena'd First Data directly in Omaha to get the data off their servers directly thus circumventing the Cayman and Bahamian banks.

After the recent UBS deal there is no more anonymity. Good luck with your plan, you're gonna need it.
 
ripsigg said:
Why people let themselves get audited is beyond me. If you are making coin, just hide your tracks.

Example:
Get paid through LLC 1. Pass all profits from LLC 1 to LLC 2 every year by way of a 1099. Have LLC 2 pass it on LLC 3. LLC can pass it on to an offshore company where you withdraw it all. Just hide ownership in those three LLCs which is relatively easy to do.

If you want to hide yourself and income even further, rent your apartment, buy your car, etc, etc in the name of one of your LLCs, and it could be one totally unrelated to the ones in the example.

Hell, why not create a circular company that no one is the owner of. Hiding is easy.
Click to expand...

That might seem okay by you for now but if you are making enough for the IRS to look into that type of operation you can be convicted of evasion and fraud which isn't just fines, it can be years of jailtime. There is a term called 'warehouse banking' which is exactly what you just described and unfortunately it is illegal. Those are the kinds of things the government looks for. I'm not saying it's going to happen, but for god sakes unless you have some kind of masterful attorney and accountant setting up a shelter like that, do not take his advice.
 
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