Questions tagged [audit]
42 questions
28
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6 answers
Found an old un-cashed paycheck. How long is it good for? What to do if it's expired?
I just found a paycheck from my old work that is dated August 5th, 2013. It's for over $300 and I'm wondering if it will still go through.
I'm worried that it will bounce or there will be some issue with depositing it. I'm also annoyed that the…
Collinux
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24
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1 answer
Why would the IRS ask for birth certificates or even audit a small tax return?
My daughter and her boyfriend live together, and he is the sole earner in the home. They each have a kid plus 1 together. H&R Block told them that he didn't make enough to do his return and now the IRS wants birth certificates. I'm a retired…
Jen
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15
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3 answers
What does an IRS interview request entail when called in to verify expenses for a sole proprietor small business?
I received an IRS audit for the following:
I had to call them within 10 days to confirm receiving the letter. And I've scheduled an appointment 2 weeks later.
They basically said I just need to come in with bank and credit card statements for the…
Patoshi パトシ
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14
votes
1 answer
If I were to get audited, what would I need?
I've been an independent contractor for about 2 months now. I'm saving receipts for all my business-related expenses, and I use Mint.com to track all my personal finances -- Everything business related is "tagged" as "LLC" (I'm not really an LLC,…
linkedlinked
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12
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4 answers
If someone gives me cash legally, can my deposit trigger an audit for them?
I understand that making a large cash deposit can trigger an IRS audit. I have about $75K to deposit. It's a mix of a loan I made to a friend by check that he paid back in cash, and a cash gift from my parents (under the tax-free gift limit).
I want…
Square Pants
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9
votes
2 answers
What increases your chance of being audited?
What increases your chances of being audited? Having a home office? Small business?
what decreases your chances? Does hiring an accountant do your taxes makes it look more credible to IRS agents?
Vitalik
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8
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1 answer
Which side has burden of proof to reopen a US income tax return after three years?
This came out of a discussion with someone over how long to keep returns and backup documentation...
As (layman) I understand it, in the first three years the IRS can go after a return for any reason. From then to six years, the IRS can only go…
QuantumMechanic
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7
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1 answer
What scrutiny to expect if making large purchase with physical cash?
I tried googling this but most answers that came up were regarding "cash" as bank deposits that a check is normally issued against. Not "cash-cash" or physical cash, as a bunch of bank notes.
Say one were to buy a $200K home or a $40K car in the…
amphibient
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6
votes
2 answers
HSA distributions and tracking receipts
During a presentation regarding HSAs I was informed the IRS can audit one for an indefinite period of time. The presenter suggested we keep records of our claims for 10+ years in paper form. This seemed to be overkill.
If the IRS was to audit my HSA…
ngnewb
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6
votes
1 answer
When does the IRS generally decide whether or not to audit your tax return?
I've never been audited by the IRS, but I was just curious if the fact that I received my tax refund in any way indicates that I am less likely to be audited this year.
My presumptive theory is that if the IRS found any reason or randomly selected…
JohnFx
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6
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1 answer
How do banks prevent fraud in international wire transfers?
How does the international banking system prevent fraud in wire transfers? Specifically suppose a wire transfer from a bank in China to a bank in the United States is done. How does the bank in the United States know that that proper accounting is…
user782220
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5
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1 answer
During an IRS tax audit, are credit card charges without a receipt a valid proof of expense, or do you need a physical copy?
I'm contemplating if I should save my paper receipts or not. I charge everything to my business credit card.
During an IRS audit, can you claim a credit card charge as a legal operating expense or do you have to prove it with a physical…
Patoshi パトシ
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5
votes
1 answer
Can I expect that an IRS audit will stick to specific questions?
According to an informational web page on the IRS's web site, when they conduct an audit, they will ask for a specific document and (presumably) ask specific questions relating to that document.
Can I expect an audit to stick to specific questions…
Five Bagger
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5
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1 answer
Are people who file their taxes correctly, still subjected to being randomly audited?
It is known that the IRS generally audits tax returns based on discrepancies, but are people (including those who file correctly) still subjected to being randomly audited?
The National Research Program (NRP), was a strategy used by the IRS back in…
Narcotixs
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5
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1 answer
Foreign governments get access to details of bank account balances?
I have heard a rumor that due to the upcoming Common Reporting Standard the details of bank accounts, including all transactions, will be reported all around the industrialized world and want to know if this is true.
The scenario involved is this:
A…
Five Bagger
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