[Dixielandjazz] 1099's

[tcashwigg at aol.com]

The guy should have simply informed the idiot IRS auditor that he was a 
multi- disciplined artist and it would be perfectly legal to use his 
studio office/workspace to practice both disciplines and stood his 
ground and made the idiot go back and get help to try and disprove it . 
Just because the auditor says it does not make it so. Trust me, Make 
them prove every little detail and don't make it easy for them, take no 
prisoners and make no unnecessary compromises which is what they want.  
  If you give in on any point they will try to ride all over you.  State 
your case professionally and defend your position to the end, and 
remember you can still file for an appeal if necessary.  As in getting 
another auditor and or a second opinion.

I had a wonderful accountant for many years who always wanted to go 
represent me and make a compromise, I looked at him and said what are 
you nuts I have no intentions of compromising anything, they have to 
prove to me that I owe it or I will not give them a dime.   It's my 
money not theirs until and if they earn it.

Cheers,

Tom

 -----Original Message-----
 From: Larry Walton Entertainment - St. Louis <larrys.bands at charter.net>
  To: rahberry at comcast.net; Dixieland Jazz 
<Dixielandjazz at ml.islandnet.com>
 Sent: Wed, 22 Feb 2006 11:45:51 -0600
 Subject: Re: Re: [Dixielandjazz] 1099's

  I'm not sure if they do that anymore but a friend who has an Art 
Studio and plays trumpet was audited some years ago and got his home 
office disallowed because he had his trumpet on his desk and the guy 
asked him why it was on his desk. He told them that he practiced 
occasionally. He had to build a partition so that his studio and 
practice area was separate. He then put the music section on the music 
C and the studio on the studio form C. Kind of silly but as I 
understand it that's how it worked out. 
  
  Home offices are a red button that may not be worth putting on your 
1040 but that's a choice everyone has to make. 
 Larry. 
 ----- Original Message ----- From: <rahberry at comcast.net> 
 To: "Dixieland Jazz" <Dixielandjazz at ml.islandnet.com> 
 Sent: Wednesday, February 22, 2006 10:23 AM 
 Subject: FW: Re: [Dixielandjazz] 1099's 
  
 > 
 > -------------- Forwarded Message: -------------- 
 > From: rahberry at comcast.net 
 > To: dwlit at cpcug.org 
 > Subject: Re: [Dixielandjazz] 1099's 
 > Date: Wed, 22 Feb 2006 16:22:20 +0000 
  >> I've been advised that one should have the audit, if possible, in 
the >> auditor's 
  >> office, rather than your own. That way the auditor can't really go 
on a >> fishing 
  >> expedition to see what else you have. You would be advised in 
advance >> what 
 >> records to bring with you. 
  >> Rae Ann (a degree in Accounting. [ Honest!] Also a Master's in 
Social >> Work) 
 >> 
 >> -------------- Original message ---------------------- 
 >> From: dwlit at cpcug.org 
  >> > I was audited in 1988. I had been told by a tax lawyer musician 
not to >> > be 
  >> > afraid of the audit, but to consider it an educational 
opportunity. >> > They 
  >> > weren't out to get me, but to determine whether I needed to be 
gotten. 
 >> > 
  >> > The auditor spent 3 whole days *in my office*, even took receipts 
with >> > her 
  >> > when she left. She examined literally every cent of *all* my 
finances. >> > She 
  >> > asked questions, gave me a lot of tips. She found only one 
taxable 
  >> > error--a $250 deduction for food bought on the way to various 
gigs. 
 >> > 
  >> > She was very pleasant, if businesslike, quite attractive, and 
sitting >> > as I 
  >> > was at my computer table while she sat at my desk, I had a nice 
view of 
 >> > her veddy nice figure... 
 >> > 
  >> > So keep all your receipts, bank and credit card statements. and 
don't >> > be 
  >> > stupid in claiming deductions. As Steve said, deduct 
aggressively, but >> > I 
  >> > would add: Be able to explain convincingly how every one of them 
>> > relates 
 >> > to your music business. 
 >> > 
 >> > --Sheik 
 >> > http://americanmusiccaravan.com 
 >> > 
 >> > Steve Barbone wrote: 
 >> > > 
  >> > > As Tom Wiggins says, just have the receipts to back up what you 
>> > > deduct and 
  >> > > declare the income. Be aggressive in you deductions, no harm in 
that. >> > > Then 
  >> > > if they audit you, they'll just take a few bucks if they 
disallow. >> > > And 
 >> > > like 
  >> > > John McLernan says, DO NOT VOLUNTEER INFORMATION JUST ANSWER >> 
> > QUESTIONS 
 >> > > ABOUT 
  >> > > WHAT IS ON YOUR AUDIT NOTICE. Do not bring all records, just 
those >> > > which 
 >> > > they ask for. 
 >> > 
 >> > 
 >> > _______________________________________________ 
 >> > Dixielandjazz mailing list 
 >> > Dixielandjazz at ml.islandnet.com 
 >> > http://ml.islandnet.com/mailman/listinfo/dixielandjazz 
 >> 
 >> 
 > 
 > 
 > 
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 > Dixielandjazz mailing list 
 > Dixielandjazz at ml.islandnet.com 
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 >  
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