Real Estate investors who want to sell or buy for the right price turn to Edward Torrez. Ed is the knowledgeable, professional Broker who works at a higher level to move rental property and to bring savings to sellers--The Investor's Broker.
Monday, January 10, 2011
What You Should Never Bring to an IRS Audit!
The most common mistake is providing copies of your other years’ tax returns. What is really does is expand your risk of needing to provide more information because it gives an auditor many things to analyze, like patterns of income and deduction amounts over multiply years.
So, why do people bring their previous tax returns with them?
Because the IRS auditors ask them to!
But, according to the IRS rules, you are only required to bring the information relating to the specific tax year that is listed in the audit notice. You are not required to provide information from any other year (except maybe carryover items) even if the auditor verbally asks you to do so.
If the auditor asks for a previous return, simply say, “I don’t believe that this relates to the audit notice and the tax year mentioned.” Almost always, that will end the matter.
Labels:
Daily Real Estate News,
Tax Tips
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