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Thread: getting audited

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    Veteran Member LilMissSophie's Avatar
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    Default getting audited

    Can anyone explain what happens if/when you get audited? I was talking to someone about it today, and I'm fairly certain my taxes are pretty airtight, but I'm just curious--also terrified of everything.

    I just have this feeling, you know?

    Another lame question--All of my records are handwritten, should I get Quicken and record them that way so it looks more professional? (I read the post about the NY dancers and the "creative writing" scribbled in notebooks)

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    Banned Melonie's Avatar
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    Default Re: getting audited

    audits can span a wide range of activities and attitudes from polite 'long distance' requests for more detailed information to a sit-down visit on their 'turf' with a 'spotlight blasting into your eyes'. Much of the audit's 'attitude' stems from the past tax compliance of that taxpayer, the 'credibility' and verifiability of that taxpayer's recordkeeping, the plausibility of that taxpayer's declared income versus their apparent lifestyle, the reasonableness of that taxpayer's claimed deductions etc.

    As to using Quicken or another program to keep self-generated financial records, well on the surface it makes a first impression that the taxpayer is conducting their business in a 'professional' manner. But ultimately, lacking independent verifiability, fancy creating writing is still creative writing.

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    Veteran Member LilMissSophie's Avatar
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    Default Re: getting audited

    I'm not going to bother with it then, I'll use it for this year though, as I'm sure it'll be helpful when I'm figuring out totals and such.

    Haha, if they ever come to my apartment--they'll probably laugh. I drive a crappy car and live in a dumpy apartment. They'll be like, "Okay we believe you!!" A lot of the money I made this year I used to help my parents, so I certainly don't live like a princess. If it happens I'm sure I'll be on here freaking out! Thanks though. I wasn't sure if they stormed your house swat team style and confiscated your records or what exactly happens.

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