Audit Representation

The IRS has been doing more and more audits lately - RECEIPTS, RECEIPTS, RECEIPTS. If you are contacted from the IRS or the State of MN that you are being audited, please contact our office. We will have you sign a Power of Attorney, which will allow Lynda to be the go-between for you and the IRS and/or the State of MN. We handle all types of audits; personal, business, sales tax and any type of tax mess you find yourself in. We can help you. We also represent clients whose tax returns were not filed by our office.

Lots of new auditors have been trained in part, for several years. There have been a lot of audits from both federal and state; and these will continue into the future(the government is broke and looking for money).

Things to watch for:

  1. Pay use-tax on out-of-state purchases.
  3. Keep bank statements.
  4. S-Corp Officers must have reasonable wages for the year, or you will have a high chance of being audited. For most purposes, "reasonable wages" would be $26,000 - $30,000.
  5. Keep good track of business miles (We also need total miles for the year. It's a good idea to have an oil change with an odometer reading toward the beginning and end of the year in order to calculate total miles.)
  6. Keep your appointment calendars.
  7. Make sure you’ve paid sales and use tax on all of your equipment purchases and out of state purchases.

IF YOU RECEIVE AN AUDIT LETTER, CALL US AND SIGN A POWER OF ATTORNEY, AND WE CAN DO THE AUDIT FOR YOU. "Don't talk to IRS yourself, and never give them more than what they ask for." (Now where did I hear that before?) Common problems the IRS says are on Schedule C's are: mileage, other expenses, and losses from year to year.