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Discussion Starter · #1 ·
My friends, your friends at the IRS audited my 2012 return. That's fine I suppose, at least I know one of them isn't in Vegas or watching porn on the American citizens dime and is actually working.
Since that return was filed my accountant went to the big IRS Center in the sky and some (not all) of related documents are MIA.
I honestly made every effort to comply with the inquisition...I mean audit and sent everything to them back in June or so (on time).
Well, the mailman brought their anxiously awaited response today and surprise, they want $$. What really burns me, beyond owing more tax is that they compute interest on the new amount back to 2012. WTF, talk about salt in a wound. In addition to a 5 figure tax bite they get 3 years interest on top of it...geez.
Rant over.
 

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If this is a personal return you really should have gotten back all the documents you gave your CPA.

Do you know why in 2015 they are auditing your 2012 taxes?!
 

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AMF YOYO
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Do you know why in 2015 they are auditing your 2012 taxes?!
They've been busy...doing...ummm...stuff.

I always found it interesting that they charge you interest on money that you owe them, but they never pay you interest on money when they owe you.

Also interesting that there is no time limit on audits so they can charge you more, but there is a time limit on filing an amended return to get more money back.
 
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They can only go back 3 years on audit for filed returns but if an item on your last 3 years' returns relates to an earlier period you need the record. e.g., you sell a house last year, you need the deed and contract from when you originally purchased to prove your basis.
 

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Still odd they picked on that year.

Did you use some uncommon deduction or credit that year?
 

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Your CPA filed for you? He should have documentation showing he did so. If he screwed up it's on his dime.
Not true. Generally, each taxpayer is responsible for the items on their return.
 

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win support for firearms - train a new shooter
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They've been busy...doing...ummm...stuff.

I always found it interesting that they charge you interest on money that you owe them, but they never pay you interest on money when they owe you.

Also interesting that there is no time limit on audits so they can charge you more, but there is a time limit on filing an amended return to get more money back.
I filed 2 years late , no penalty, and they paid interest on the refund. I'm certain NYS paid, I believe IRS also paid. as long as they owe you when filing late you're safe
 

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Recovering vegan, bacon saved my life
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I believe they can go back up to 7 years and if they find a return that they choose for audit they can subsequently go back two years from that.

I feel your pain Tom. I received an audit for this years return which I filed myself. Thankfully, the result was I didn't end up owing anything but my refund amount was cut by approx 1/3.
 

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Discussion Starter · #16 ·
No idea why 2012. My CPA died and his office is less than squared away right now to say the least. I had most of the records, some I had to recreate (get copies of) and other stuff I seem to be SOOL on.
I agree that the penalty or additional tax owed should be on him, I paid him for his service and expertise. Honestly, I think if he were still alive he would have done much more that the office did without him.
The interest bugs me, I'd be ok with having interest charged from the date of notice of the amount due but to make it retroactive for 3 years is a croc.
Oh well, free cell phones for everyone on me guys.
 

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Just curious... what interest rate?
3% compounded back to 2013 (April 15 filing date), except for the part that 30%.
Payment due 15 days from date of their letter which is Sept 4. Received it today, Sept 9 which allows 10 days to get it in the mail and to them. The interest carries out to Oct 5 so even if I pay them on time I still pay interest compounded out to Oct 5...try that in any of our businesses. Isn't it called fraud when you charge interest on money not owed or already paid?
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3% compounded back to 2013 (April 15 filing date), except for the part that 30%.
Payment due 15 days from date of their letter which is Sept 4. Received it today, Sept 9 which allows 10 days to get it in the mail and to them. The interest carries out to Oct 5 so even if I pay them on time I still pay interest compounded out to Oct 5...try that in any of our businesses. Isn't it called fraud when you charge interest on money not owed or already paid?
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So much for usary.
 

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Lousy Shot
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... In addition to a 5 figure tax bite they get 3 years interest on top of it...geez.
So? Prevailing interest rates are right around 0%. If they charge you more than that, make them justify it.

...

Sorry, didn't notice your last post.

Aw, just pay them, ... will ya? Nancy Pelosi is retiring and somebody has to pay her pension.
 
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