What do I do? I just got a letter that our state tax return is being audited

We got back a big tax return this year and our state refund is being audited which is strange b/c the federal return amnt was much more. I guess I just provide them with what they asked for but of course DH throws out most, if not all of his receipts for his job expenses (he is a cop)

Re: W T F do I do? I just got a letter that our state tax return is being audited

I'm sorry, no advice, just

It's this year's return? I didn't know it happened that fast, my DH got a letter 3 years later saying he paid incorrectly from an audit.

Re: W T F do I do? I just got a letter that our state tax return is being audited

Re: W T F do I do? I just got a letter that our state tax return is being audited

Posted by jellybean1420

It's this year's return? I didn't know it happened that fast, my DH got a letter 3 years later saying he paid incorrectly from an audit.

Yes...it says for tax year 2007. We haven't even received our state return yet through direct deposit just the federal.

If I call the numbers they provide, will they tell me which portion of my return they are questioning?

Re: W T F do I do? I just got a letter that our state tax return is being audited

Are you sure it's the State Return? I do our taxes and I dont recall their being any business expenses deductible on the state return..

I apologize I just reread your post..You dont know what part they are questioning...we had gotten a letter last year b/c we had claimed a new oil burner on our NY State Return we got a letter from them regarding an audit..they wanted the proof that we had gotten a new burner system. We just had to furnish them with a receipt...

I had to call to find out what the letter was in reference to.

Message edited 3/21/2008 9:01:14 PM.

Re: W T F do I do? I just got a letter that our state tax return is being audited

did you have an acct do them?
i know that if we were to god forbid ever get audited my acct deals w. the government directly

Re: W T F do I do? I just got a letter that our state tax return is being audited

Message edited 3/21/2008 9:08:04 PM.

Re: W T F do I do? I just got a letter that our state tax return is being audited

Re: W T F do I do? I just got a letter that our state tax return is being audited

I hust read an article that said the IRS (not sure if NYS as well) is not looking at home offices as closely and are focusing more on small business losses claimed on schedule C. could this be you?

Re: W T F do I do? I just got a letter that our state tax return is being audited

As a clarification, small businesses, "home offices", single-member LLC...it's all the same. It all goes on Federal Schedule C. Yes, the IRS does look at these more closely, especially if you report losses, even more especially if you report losses in multiple years. The IRS reports your Federal 1040 information to your home state. Your Federal 1040 is the basis (in most states) for whatever you report in your home state, so your home state also has a right to audit you. Any income or deductions you claim on your Federal return will affect you home state. In fact, some states require you to attach Federal schedules to your state return.

Your paid tax preparer can represent you in front of the authorities generally by signing a power of attorney form.

Best thing to do in most audits is just give them as much info as you can regarding whatever part of your tax return they are focusing on. (FYI, Tax "return" = the forms you filed. Tax "refund" = the actually $ you get back)

Yes, audits su_ck. There's not much you can do other than try to comply and wait for the results. If everything is on the up and up, then you're fine.

Oh yeah, when it comes to audits, since you are the one who signs your tax returns, anything that you put on your tax return means that you have the burden of proving that it's valid, it's not the state or IRS' job.

Best of luck!