[Dixielandjazz] I am not a Paid Tax Preparer folks.
David W. Littlefield
dwlit at cpcug.org
Sun Mar 13 13:33:05 PST 2005
At 01:31 PM 03/13/05 -0500, you wrote:
> In a message dated 3/13/05 9:14:33 AM Pacific Standard Time, dwlit at cpcug.org
>> The IRS audited my 1987 tax return, a $100k "gig" year.
>> The best advice I ever got was from a musician tax lawyer: the audit is NOT
>> out to get you, but to see whether you need to be gotten. Therefore, you
>> should view it as an educational *opportunity*.
> Quoth Tom:
> For the most part I would say this is true, however be aware that there are
> some overzealous idiots working for them as well that are Hell bent on making
> a name for themselves by auditing and COLLECTING additional taxes for the
> IRS, legally or illegally.
Of course one runs across such boobs any place. I was lucky enough to run
across the other kind for 3 days...
> I use spread sheets in Excel and sometimes I use the tax programs, but lately
> have gone back to doing the returns by hand, because the tax programs do not
> always work because they are pretty much standardized for the average user.
My economy is actually very simple.
> As for computer generated returns being less likely to be audited, I don't
> concur with that because the ones that the overzealous guy selected for audit
> were all computer generated and e-filed.
> When I run into one of those guys, I like to not show him my spread sheets at
> all, but take all the invoices contracts and receipts, canceled checks and
> shake them up in a big box and then deliver them to him and tell him to call
> me when he has it all figured out.
What not to do when facing your examiner [8^)
My warning letter told me to organize my papers, which is what made the audit a
PITA. I still don't organize 'em until January, but it's a good job to do while
watching a football game, and then I just do the basics. The nice lady didn't
ask to see any computer files...
> I had one guy in the 70s tell me he was going to audit three years worth.
> I gave him everything for all three years in boxes like that.
> He spent about two weeks he said, putting together a spread sheet from the
> first year and actually found more deductions than I had claimed. He related
> to me that my return was fine, changed my refund amount sent me a check for
> the additional refund and had the other two years worth of papers returned
> without even looking at them and accepted those returns as filed.
I bet most of 'em ain't swine, especially if you don't screw with 'em...and
especially if you demonstrate good-faith effort.
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