irs auditors here mon, tues, and just leaving now...they are not interested in anything but our pension fund...they said it was a "routine" audit...not ONE single question about anything having to do with the business itself...they did not say much more than do not worry....i can not really figure out if they are after me or the investment house... anyone heard of this before...i am waiting to find we invested in a bernie madoff subsidery..
irs audit
- Thread starter rodneee
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I know when it comes to IRS you don't have much of anything, but... you still have a right to know WHY you are audited.
renosteinke
Senior Member
- Location
- NE Arkansas
I've said it before, but it bears repeating .... get, and read, the book "What the IRS Doesn't Want You to know." The book does an excellent job of explaining exactly how the IRS is structured, the duties of the various divisions, and the 'mechanics' of audits. Anyone who pays taxes ought to read this book.
A few other observations:
1) It's better for you to meet them at their office. Nothing good can come from them visiting you;
2) Meeting with auditors is what you pay your CPA for. If you don't have one, get one;
3) There is NEVER a 'routine' action by law enforcement that you have 'nothing to worry about.' They're pros ... and in their field, you're a novice. Get your own pro; and,
4) Finally, you have two basic options when dealing with such functionaries: say nothing, or complete disclosure. Lies and half-truths have a habit of biting you. Indeed, this has become a favorite of law enforcement these days: when the original investigation doesn't pan out, lock the target up for fibbing. That's what sent Martha Stewart to jail.
A few other observations:
1) It's better for you to meet them at their office. Nothing good can come from them visiting you;
2) Meeting with auditors is what you pay your CPA for. If you don't have one, get one;
3) There is NEVER a 'routine' action by law enforcement that you have 'nothing to worry about.' They're pros ... and in their field, you're a novice. Get your own pro; and,
4) Finally, you have two basic options when dealing with such functionaries: say nothing, or complete disclosure. Lies and half-truths have a habit of biting you. Indeed, this has become a favorite of law enforcement these days: when the original investigation doesn't pan out, lock the target up for fibbing. That's what sent Martha Stewart to jail.
kwired
Electron manager
- Location
- NE Nebraska
As renosteinke mentioned the CPA-
If you use one (and you should) contact them and have them meet with you at the audit. They should tell you what information to provide or not to provide and really should do most of the talking for you - that is part of why you hired them, if they are doing something wrong that is why they have liability insurance for what they do.
If you use one (and you should) contact them and have them meet with you at the audit. They should tell you what information to provide or not to provide and really should do most of the talking for you - that is part of why you hired them, if they are doing something wrong that is why they have liability insurance for what they do.
petersonra
Senior Member
- Location
- Northern illinois
- Occupation
- engineer
I had read somewhere that for some reason they are looking more closely at retirement accounts of late. No clue as to why.
I agree with the post that said to get a tax pro to handle this. I have read that an enrolled agent is almost always a better choice than a CPA. CPAs rarely have as much experience dealing with the IRS as you might think. Enrolled agents used to be IRS employees.
I agree with the post that said to get a tax pro to handle this. I have read that an enrolled agent is almost always a better choice than a CPA. CPAs rarely have as much experience dealing with the IRS as you might think. Enrolled agents used to be IRS employees.
kwired
Electron manager
- Location
- NE Nebraska
Perhaps people are withdrawing their retirement accounts before they have nothing left in them?? That would be taxable income, although the company holding the account is supposed to report this kind of thing.
audit update
audit update
thank you for your input.. i got a letter of introduction, not the dreaded so called "TARGET" letter...thus no need for lawyers, cpa's, sworn statements, plea bargins, etc at this point...these guys are the compliance auditors of the regulatory, not criminal arm of the irs... they will do nothing more than a glorified bank reconciliation...if the money trail ultimately leads them where it should, they should do nothing more than break my balls or possibly level a small fine for procedural errors...if they find things they do not like they could forward the results to the next level for further review...i was really just trying find out if anyone heard of people or firms being fined...and how much?
audit update
thank you for your input.. i got a letter of introduction, not the dreaded so called "TARGET" letter...thus no need for lawyers, cpa's, sworn statements, plea bargins, etc at this point...these guys are the compliance auditors of the regulatory, not criminal arm of the irs... they will do nothing more than a glorified bank reconciliation...if the money trail ultimately leads them where it should, they should do nothing more than break my balls or possibly level a small fine for procedural errors...if they find things they do not like they could forward the results to the next level for further review...i was really just trying find out if anyone heard of people or firms being fined...and how much?
A lot of people are doing just that as long as you pay the tax penalty's for early withdrawal they should leave you alone.
Remember they just want "ALL YOUR MONEY"....:lol:
renosteinke
Senior Member
- Location
- NE Arkansas
"Why are they looking at retirement accounts?"
The question reminds of Willie Sutton's answer when asked why he robbed banks: "That's where the money is."
So... WHY have retirement accounts? That answer might explain the sudden IRS interest.
First off, retirement contributions represent taxes the governemnt is not getting TODAY. Bookkeeping errors = more taxes.
Second, there's been plenty of hanky-panky with retirement accounts. Just as some employers fail to forward witholdings to the IRS, some use 401K's to solve their cash flow problems, etc. On a 'higher' level, there's been plenty of shennanigans among the pension funds- much as there was in the related insurance and banking fields.
Back around 1978, Jessie Jackson expressed to me a great fascination with retirement funds. All that money ... how to get some? That interest has not gone away; you can be sure folks -within government as well as without- are still questing after the holy grail of pension funds. By the time these folks are done, the Teamsters will look like angels.
Finally, there's misdirection. There's no way to look at pension accounting without opening the books ... which means it can be just an excuse to look at something else. "Enforcement" sits in a desk across form "compliance." You bet you need to treat this audit seriously.
The question reminds of Willie Sutton's answer when asked why he robbed banks: "That's where the money is."
So... WHY have retirement accounts? That answer might explain the sudden IRS interest.
First off, retirement contributions represent taxes the governemnt is not getting TODAY. Bookkeeping errors = more taxes.
Second, there's been plenty of hanky-panky with retirement accounts. Just as some employers fail to forward witholdings to the IRS, some use 401K's to solve their cash flow problems, etc. On a 'higher' level, there's been plenty of shennanigans among the pension funds- much as there was in the related insurance and banking fields.
Back around 1978, Jessie Jackson expressed to me a great fascination with retirement funds. All that money ... how to get some? That interest has not gone away; you can be sure folks -within government as well as without- are still questing after the holy grail of pension funds. By the time these folks are done, the Teamsters will look like angels.
Finally, there's misdirection. There's no way to look at pension accounting without opening the books ... which means it can be just an excuse to look at something else. "Enforcement" sits in a desk across form "compliance." You bet you need to treat this audit seriously.
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