# Ever been Audited by the IRS?



## BillyM83 (Jan 27, 2017)

So my accountant sent me an invoice for filing my 2016 taxes with an optional line item for audit protection. Think that's worth it? $195...


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## Philbilly2 (Aug 25, 2007)

BillyM83 said:


> So my accountant sent me an invoice for filing my 2016 taxes with an optional line item for audit protection. Think that's worth it? $195...


What does this "audit protection" include?


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## BillyM83 (Jan 27, 2017)

For $195, my accountants will handle all correspondence to resolve any letters of inquiry relating to your 2016 income tax returns on your behalf at no additional charge. 
-If your 2016 federal or state income tax return should be audited, My accountant will represent you up to and including any appeals or protests needed to be filed with the IRS or the State Depts of Revenue at no additional charge
-Whenever you receive an audit notice or letter of inquiry from the fed or state gov relating to your 2016 income tax return, simply send it to my accountant and authorize us to represent you.


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## Philbilly2 (Aug 25, 2007)

Your accountant does not already do that?

Maybe I just pay to much to start? as my accountant handles all the letters that we get from IRS, IDES, IDOR, ETC. Just scan and send and they are handled.


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## BillyM83 (Jan 27, 2017)

My accountant charges me a pretty penny to file my taxes. Almost $400 now and that's without the $195 charge. I think it's time to look into turbo tax or something


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## Philbilly2 (Aug 25, 2007)

Is this personal taxes or a Corp?


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## BillyM83 (Jan 27, 2017)

I guess it's considered personal as my plow company is only a DBA


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## Philbilly2 (Aug 25, 2007)

$400 for personal taxes that include the DBA does not sound terrible to me. When you start to factor in all of the items that go into proper filing of business taxes.

Do you use quick books or are you bringing in a boot box full of receipts?


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## BillyM83 (Jan 27, 2017)

I just give them my year end credit card statements to keep it simple


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## Philbilly2 (Aug 25, 2007)

BillyM83 said:


> I just give them my year end credit card statements to keep it simple


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## Philbilly2 (Aug 25, 2007)

That is NOT simple...

So you are making your accountant go threw your credit card receipts and line itemize what each purchase is for...

$400 is cheap if that is the way you are doing it...


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## BillyM83 (Jan 27, 2017)

It's simple because the year end statements summarize each category like vehicle expense, gas etc


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## leigh (Jan 2, 2009)

Looks like a scam to me.If you file a return with no "red flags" you'll be hit by lightening before you get audited.Even if you get audited it will usually be for a specific deduction. No biggy . My tax guy signs my return and will take care of any audit.It takes 30 minutes to do my taxes, business and personal,275$.
You've got to upgrade your accounting practices! Get QB and enter every little expense. Download your banking and cc directly into QB and put them in the proper places.At tax time a simple 1 page report will be available to your accountant.You may be leaving a lot of money in the hands of the IRS.Forget turbo tax, your a contractor,leave it to a professionals.


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## Randall Ave (Oct 29, 2014)

Jeez, your not paying much, I pay 500.00 every quarter.


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## Philbilly2 (Aug 25, 2007)

leigh said:


> At tax time a simple 1 page report will be available to your accountant.You may be leaving a lot of money in the hands of the IRS.Forget turbo tax, your a contractor,leave it to a professionals.


Bingo.

I just take a backup file and email it to my guy.

I prefer to give him the whole file as he makes well, let's just call them "adjustments" to the file before he finalizes the taxes. Then if I get audited, that backup file is the file that is used to handle the audits.


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## Mark Oomkes (Dec 10, 2000)

Is your accountant a CPA?


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## LapeerLandscape (Dec 29, 2012)

$400. does sound reasonable but if he's charging you and doing/signing your taxes I would think he should still take care of it.


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## On a Call (Jan 14, 2015)

Randall Ave said:


> Jeez, your not paying much, I pay 500.00 every quarter.


And I was paying that much a month. Just saying...was.


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## ktfbgb (Jan 31, 2016)

I pay around $375 to my CPA for year end tax filing. That is for both business and personal. He gives me a good price I think. He sends a questionnaire out in January to fill out, then you print off the year end summary from quick books, and bring both in. It only takes him 45 minutes to complete, and if he has a question or wants to change something I send him the whole year of QB electronically. His filing software automatically alerts him if there are any flagged items before submitting. Once those are corrected then it gets submitted. 

That price includes unlimited calling privileges, meaning I can call him as many times I want and ask questions during the year. And if I ever do get audited he will take care of everything for no charge. That's why he spends big bucks on the software that will flag stuff. He said audits are few and far between with his software. 

If you aren't bringing him a QuickBooks type report that shows both money in and money out that's categorized for both revenue and expenses, I can see why he would charge extra to take care of an Audit as not having any type of accounting software that you use for the biz is gonna make you much more likely to get audited, and instead of it being a simple request from the IRS to produce simple verification of whatever is in question, it's going to be a hassle for him to take of it with your method of non accounting.


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## cjames808 (Dec 18, 2015)

$400 per hour. Sounds right.


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## fireball (Jan 9, 2000)

I would be glad to show you but I can't till the IRS is done with the audit


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## FredG (Oct 15, 2012)

Your chances of a audit are slim to none. Why pay for a service you may not need. Furthermore your CPA done your taxes and signed them and was payed for the service and has to take responsibility. I think your dealing with the dishonest.


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## framer1901 (Dec 18, 2005)

My accountant takes responsibility for filing of the info provided, they do not audit the books provided, they complete the return with the info we provide.


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## fireball (Jan 9, 2000)

to hell with Donald Trup's tax returns, I wanna see Rachael Madow's returns


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## MajorDave (Feb 4, 2011)

Anyone use a receipt tracker? Shoeboxed or Taxbot? I started a few years ago, take a pic of each receipt (they also track mileage) and file it immediate. Don't have to save the paper per IRS rules. I save all my receipt in a spreadsheet. Each line has a link to the pic of the receipt. My deductions went from $15k plus and minus to over $50k. Every meal, fuel, mileage, Home Depot run --- everything! Just my 2 cents...so to speak!


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