audit and new expenses

[rhmillett]

I have a client that had an audit. While looking for receipts for the audit he discovered some new receipts that were not on the original return. These were not mentioned during the audit.

His mileage was disallowed because of not separating business and non-business miles driven, so he owes money. He wants to appeal the mileage and I would like to add the extra deductions which he has receipts for and should have been on the original return. I am just unsure of how to time this. Do I wait until after the appeal? or do I add them to the appeal?

Thanks.

[kcjenkins]

I'd add them to the appeal.

[michaelmars]

DISCUSS first with auditor if it hasn't become adversarial. might eliminate the need for an appeal

[rhmillett]

DISCUSS first with auditor if it hasn't become adversarial. might eliminate the need for an appeal

Thanks! We do have another meeting with the auditor this Wednesday morning. I hope we have better luck this time on the mileage, but I'm not holding my breath. He also disallowed all my clients Verizon statements because the auditor couldn't find where it said how much my client had paid. Anyway, it should be interesting.

[kcjenkins]

His checks to Verizon will show how much he actually paid, the statements support the business nature of the calls.