Okay smart people, I need some advice. I am currently being harassed (that's what it is at this point) by the IRS and I don't know what to do.

 

This all started when my accountant, who is now retired, made an error on my business mileage for 2013. He was supposed to type a 2 but typed a 5 on his keyboard. This triggered an audit.

 

I have been working on that audit for more than a year at this point. After months of multiple-hour phone calls and hard work, they determined that none of my business expenses were valid and threw them all out. Now keep in mind, I have a legitimate business with legitimate business expenses and ALL of them were thrown out. They sent a bill saying I owe just under $8,000.

 

I then called and again explained that I have legit expenses and an actual business. So I'm now working with the appeals division and have until the end of March to go through the appeal process. We are talking hours and hours of work.

 

Today, I got a bill from the Kentucky Department of Revenue for another $2,700 as part of the same audit. So, if I lose the appeal, I'm going to be set back roughly $10,000 even though I actually worked to earn that money.

 

Last Friday, I received a notification from the IRS that I am now being audited for 2014, as well.

 

At this point I am in a situation where I'll have to sell my house because I simply can't afford to pay back that money. The other option is to run my car over a cliff and end it all. And while that is mostly a joke, that is how they make you feel.

 

This has ruined my life at this point and ransacked my financial future. I'm overwhelmed and completely at a loss as to how I should proceed.

 

Any thoughts or advice would be greatly appreciated. :rolleyes:

Okay smart people, I need some advice. I am currently being harassed (that's what it is at this point) by the IRS and I don't know what to do.

 

This all started when my accountant, who is now retired, made an error on my business mileage for 2013. He was supposed to type a 2 but typed a 5 on his keyboard. This triggered an audit.

 

I have been working on that audit for more than a year at this point. After months of multiple-hour phone calls and hard work, they determined that none of my business expenses were valid and threw them all out. Now keep in mind, I have a legitimate business with legitimate business expenses and ALL of them were thrown out. They sent a bill saying I owe just under $8,000.

 

I then called and again explained that I have legit expenses and an actual business. So I'm now working with the appeals division and have until the end of March to go through the appeal process. We are talking hours and hours of work.

 

Today, I got a bill from the Kentucky Department of Revenue for another $2,700 as part of the same audit. So, if I lose the appeal, I'm going to be set back roughly $10,000 even though I actually worked to earn that money.

 

Last Friday, I received a notification from the IRS that I am now being audited for 2014, as well.

 

At this point I am in a situation where I'll have to sell my house because I simply can't afford to pay back that money. The other option is to run my car over a cliff and end it all. And while that is mostly a joke, that is how they make you feel.

 

This has ruined my life at this point and ransacked my financial future. I'm overwhelmed and completely at a loss as to how I should proceed.

 

Any thoughts or advice would be greatly appreciated. :rolleyes:

 

I think you need to hire the best tax attorney money can buy.

I suggest you contact a CPA to help you work through all of this.

And for what it is worth Uncle Sam and KY have done some kind of mini-audit on BGP too and they are killing trees sending me notifications of what they want from 2013 through 2016.

 

I feel like a Peasant in a Kingdom.

I suggest you contact a CPA to help you work through all of this.

 

I just had a long conversation with my CPA. I'm still not feeling good about it. I'm kind of feeling at a loss at this point.

You've been trying to deal with this all by yourself without hiring a CPA?

 

A good CPA or tax lawyer should be able to get this taken care pretty easily IMO.

I think you need to hire the best tax attorney money can buy.

 

I considered this but I'm not sure where to start or how much this would cost me. I mean, would I be out the same amount of money for an attorney?

You've been trying to deal with this all by yourself without hiring a CPA?

 

A good CPA or tax lawyer should be able to get this taken care pretty easily IMO.

 

A CPA has always done all of my tax preparation. That's why I can't believe I'm in this situation now.

I just had a long conversation with my CPA. I'm still not feeling good about it. I'm kind of feeling at a loss at this point.

 

Then you need a new CPA!

Then you need a new CPA!

 

Not sure if you noticed on Facebook or not, but yes, my head almost exploded when that girl tried to call me out for my "luxury lifestyle".

A CPA has always done all of my tax preparation. That's why I can't believe I'm in this situation now.

 

Whenever you get anything from the IRS it should always immediately go to your CPA or tax lawyer assuming you use one. I can see why the $$ figures would be high if this has been going on for a while. The fees and interest they assess is ridiculous.

 

If you've been giving all the communications from the IRS to your CPA the entire time, you need to find a new CPA.

I considered this but I'm not sure where to start or how much this would cost me. I mean, would I be out the same amount of money for an attorney?

 

At a very minimum you need to get organized and consult with an Attorney. Even if they charge you for one hour, it will probably be some of the best money you ever spend.

Not sure if you noticed on Facebook or not, but yes, my head almost exploded when that girl tried to call me out for my "luxury lifestyle".

 

A CPA is not a luxury; it's a smart investment to make sure your business is taken care of correctly. Tell that stupid girl to shut up. :lol2:

Same happened to me, kind of. I made my tax person file everything back to the IRS admitting they screwed up, not me.

 

I was not taking blame for a screw up I didn't do.

Lets start simple here and just follow along.

 

1. The audit was for the 2013 tax year?

2. Was this return filed timely?

3. What exactly was the initial issue when you mentioned something about a 2 and a 5?

 

I will try and follow along as best I can while at work.