proof acceptable in audit??

[WITAXLADY]

It seems I asked this but when I scroll thru my posts, I cannot get past the first page either way..

New business and converts personal equipment - lawn service - mowers, tools, trailers, etc into the business.

Takes a picture, adds page of current flyers or internet with value and deducts for age to get comparable value.

The auditor will not accept anything - says none of it is business and worth -0-.

Even though it is all used for business now.

Any response to the auditor?

About $7,000 in taxes over 3 years. Rest is legit.

We have used this procedure many times before when items are converted.

Please help,

Thank you, D in WI

 

[Lee B]

Copied from the website of The IRS Mind:

"Appealing adjustments to the IRS Independent Office of Appeals:   Some audits end up in disagreements with !he IRS auditor.  The first step is to request a conference with the auditor’s manager.  If agreement cannot be reached with the IRS auditor, then the taxpayer can appeal to the IRS Independent Office of Appeals.   If an agreement cannot be reached in Appeals, the taxpayer can also timely request a review by the courts."

Your auditor is playing hardball to see who blinks first.  As long as your client doesn't get nervous, hang in there, but don't over promise to your client.

[Catherine]

ALWAYS go up the food chain to the manager. They are usually far more reasonable. And the auditor is required to give you the manager's name and full contact info. 

[WITAXLADY]

Well, I can try but this is state and I do not think WI has supervisors!! (tongue in cheek!)

Thank you!

D