Audit

[taxbrewster]

Looking for a little advice here. Had a T/P get a random audit in July of 09. We met the auditor within 2 weeks. T/P had a small mason business that has been going down the tubes the last couple of years, gross receipts around 100k. T/P wife gets a w2, two kids in college. They keep very good books, transfer money back and forth between business account and personal account to cover bills. Really nothing to hide, had a larger amount of miles cause of driving to job further away from home to make $$ in Michigan's down economy.

Met with the auditor, he says looks pretty straight forward. Took all day to review info. Say he was leaving town for a week or two to do training, wanted to copy a couple of items to continue reviewing them, said this should be an open and shut case. He was upset that the IRS puts him on these small cases..He said he would call when he gets back to set up an closing meeting. 2 weeks go by nothing...I call left message. 2 months go by, couple of messages, no return call...I continued to call about every couple of weeks got voice mail, voice mail, voice mail....Finally called this morning. He picked up said he has been on a huge corporate case and has not touched anything else. Said he would call Friday to wrap things up.

Has anyone heard of something taking so long, is there someone I can complain to or site the fact it has taken FOREVER for him to complete the audit??

Of course when they say jump we say how high, when we ask for an answer they turn into David Copperfield and disappear.

Hope everyone is doing well...Thanks for any help.

[samingeorgia]

I had this happen when I was first starting out. An auditor started on a taxpayer's self-prepared return and there was a significant amount of tax to pay. The auditor and the client agreed that there was money owed, but then the auditor did a disappearing act.

At the client's insistence, I called the auditors supervisor and asked if someone else could be assigned to finish the job. No, I was told, Mr. X will be in touch with you soon. The supervisor said that Mr. X was being transferred but had to finish his caseload. Sure enough, Mr. X called within a couple of weeks and set up a time to come to my office.

I thought he was going to beat my calculator keys off the keypad. He finished the audit without saying a word, and slapped the report down in front of me and my client. My client wisely shut up and signed.

Mr. X got up, threw his stuff in the briefcase, and, as he was going out the door, turned and said, "I just want you to know that calling my supervisor had no influence on getting me down here!" Being young and an ass, I said, "Well, whatever works!"

Take an old timers' advice: let sleeping dogs lie!!!!!

[taxbrewster]

Ha, did my youth really show in my message. I agree, I wanted to let them sleep...Client had been very worried and concerned, I said we have nothing to worry about. I was very comfortable with the returned that was prepared.

Thanks for the comment.

[samingeorgia]

At my age, everybody looks like a youth! I had surgery on my foot in January and I swear the doctor looks like he's barely old enough to shave, let alone drive a car!

[ILLMAS]

Last summer a state auditor was auditing one my associate client, we were wondering why it was taking so long and she requested to be at our office and not request additional information, she was working and making calls. One day we took her out for lunch and she was telling us that she is required to do admin work at TP office, so she asked us if she can use our office when a audit client cancels at the last minute, we told her sure no problem. It been a couple months already and we haven't seen her, very nice lady.

[taxbrewster]

So, I am still dealing with this audit, it has been open for 7 months. Can not get a hold of the Agent. I finally got him on the phone 1 month ago, said he was very busy on a large business audit, said he would call me in a day or two...nothing for 6 weeks. T/P want to file because of student aid forms, between a rock and hard stop...any suggestions? Thanks.

[Lion EA]

Taxpayer Advocate is helpful when things are stalled, you're not hearing back from the right person: 877-777-4778

[michaelmars]

file as you normally would at this point. i have had audits go on for over a year and never hear. why would i push when the statute is running?

had a client that owed about $10m [we informally agreed to this number with the agent] she never sent a report and we never asked, that was over 2 years ago so the statute on that return is almost over.

once had a corporate audit schedule and spend a week getting records together. the day before she callled to cancel because of a mandatory inservice. Never heard again, that was 2003. i billed for my week prep time and that was that.

[taxbrewster]

Ok, thanks for the advice. That is just it, I don't want to push him and upset the apple cart and open up other years. There is really nothing to hide, it is more just the process and stress that the clients go through.

[cat1]

this situation works to your advantage as auditors have time limits on cases, even if not officially stated. start

politely hasselling the auditor at this time should work well for you in having them make concessions.

[kcjenkins]

Share these with your client................

[Catherine]

Fabulous!!!

[Margaret CPA in OH]

KC, where are you finding these great Shoe cartoons? My local paper no longer carries the strip and I didn't realize how much I missed them!