OMG...has anyone been audited by the Feds?

I want to cry. We got audited by NYS for 2009 and JUST got a letter today the Feds are auditing us too. Our tax preparer did nothing to help us and in the end we only owed NYS a small amount of money (which they took out of tax return they are holding).

A friend of DH's who also goes to the same tax preparer is currently being audited for 2009 and he said the interest and fee's they charge are ridiculous. It can't be coincidence that two people that use the same tax preparer are being audited for the same year. There has to be a problem with the tax preparer.

Anyway, what do I do now? They are auditing itemized deductions and work expenses. I have no idea where to start. To contact them directly. To contact an attorney which I have no idea how much that would cost.

Help!


ETA: DH's friend just called him and he is being audited AGAIN for 2009. He just got done paying them $8k for 2007.

Message edited 4/11/2011 3:54:48 PM.

Re: OMG...has anyone been audited by the Feds?

Did you contact your accountant? They should have backup for all of your deductions and work expenses.
When our clients get any sort of notice from the IRS or NYS we usually handle it for them.

Re: OMG...has anyone been audited by the Feds?

Re: OMG...has anyone been audited by the Feds?

I hate to say it but you might be SOL...My husband used a shady accountant for several years (he wasn't payroll savvy and never really looked at what the guy was claiming for him; he used to just drop everything off and not be involved in the process). He got SCREWED because the guy was shafting hundreds of thousands from the IRS and his clients. I can't tell you how I cringe when I see anything linked to the IRS. Between 2005 & 2008, he owed out like 20+ grand in P&I.

Every single client the guy ever did filings for was audited and slammed.

Re: OMG...has anyone been audited by the Feds?

If this guy isn't going to help you -- the first thing you should do is really review everything on your income taxes, and what was put as deductions and expenses on the schedule A.

That is likely what they are questioning first, and that is what you will have to prove are legit to avoid any additional expenses.

Re: OMG...has anyone been audited by the Feds?

I am still living this nightmare.

I was audited by the Fed and then the state caught wind and then I owed them money.

Still trying to figure out what is what. They are a piece of work over there.

If you were audited by one agency you will probably have to reconcile with the other agency.

You should have back up for your expenses. Keep your bank statements, driving logs, and any other records you have of your expenses.

Did you write your income down very low? That is usually the flag.

Also, 4 of our friends were audited in the same year. We all used the same tax preparer.

I will never, ever use a tax preparer. Only a CPA. I learned my lesson.

The upshot of this all is it's only money. If your tax preparer won't help you, consult with a CPA and pay them to help you navigate. I ended up being best pals with my tax examiner and my tax preparer almost cost me an additional $6K. Nice...right?

Re: OMG...has anyone been audited by the Feds?

We were audited two years in row (crossing fingers we do not get audited again). We handled it ourselves - and it was not as horrible as we had anticipated. The first year we were audited we owed an additional amount. Last year, they did not find anything and so there were no additional changes/liability.

Good Luck!

Re: OMG...has anyone been audited by the Feds?

It's definitely possible they are going through the clients of a particular tax preparer because that preparer raised a red flag on their end.

All you can really do is prove the deductions that the IRS is questioning. Try to find as many receipts, bank & credit card statements that you can and reconcile what is on the return with what you claimed. Some items are easier than others - your property tax & mortgage interest deduction should come right off a statement. Work expenses can be trickier. You don't need an attorney, as even if you hire an attorney you will still need to go through all of your items.

Re: OMG...has anyone been audited by the Feds?

Posted by Mommy2Boys

Posted by VeeJay

Did you contact your accountant? They should have backup for all of your deductions and work expenses.
When our clients get any sort of notice from the IRS or NYS we usually handle it for them.

We use a tax preparer from R&G Brenner, not an accountant. I am so stupid. I should have listened to my gut and gone with an accountant. This same guy is doing NOTHING to help DH's friend who is currently being audited by the Fed's. I think we are on our own

Re: OMG...has anyone been audited by the Feds?

Re: OMG...has anyone been audited by the Feds?

You know, I did my friend's taxes one year and the next she went to a fake accountant (don't know the name) and got a lot more money back. I warned her it wasn't legal.


I don't know anyone that uses Turbo Tax that has been audited, you can't really "lie" on taxes. I only heard of people audited by those large tax shops.

Re: OMG...has anyone been audited by the Feds?

Re: OMG...has anyone been audited by the Feds?

Message edited 4/11/2011 4:19:59 PM.

Re: OMG...has anyone been audited by the Feds?

Re: OMG...has anyone been audited by the Feds?

My parents got audited.

I forget how much they owed (if anything), but I actually just wrote the check for the lawyer/accountant fees - $12k!!!!

Re: OMG...has anyone been audited by the Feds?

WOW! this whole thread is scary!!!

To the OP: Good Luck! I hope it all works out for you!



I did go to an RG Brenner guy once, years and years ago. But I didn't like him AT ALL!! never went back.

Re: OMG...has anyone been audited by the Feds?

yikes! hopefully nothing is amiss, but def get all your records together.

I would go to a CPA and see if they can help - yes, it'll be additional $$ but you'll know for sure what you do/don't owe.

Good luck!

Re: OMG...has anyone been audited by the Feds?

I texted you

Re: OMG...has anyone been audited by the Feds?

Once you get audited by one agency you are required to file an amended return for the other one with the changes made to the audited return.

I would get your paperwork in order and try to find abck up for nay work related expenses that may have been taken on your return. If you claim mileage come up with a log of the mileage you drove, where and when and how much. Also get copies of checks or receipts for your chairtable deuctions. If you have any mendical deductions, get copies of that paperwork too.