IRS Audit question?
 

I have been calling my concrete man for about two weeks. No return phone calls, nothing. Finally, he calls me back stressed. IRS audit. I am told me the agent threaded him with jail time to shake him up. He's a small business and do not earn that much money. They don't build sky scrapers that's for sure. He's shown them everything and has nothing to hide. A fairly good size job was turned down for another one of his contractors just because of the stress he's going through. Can they do that? When does one get haul off to jail for this kind of stuff? Is there a dollar amount or just random crap when the agent has a bad hair day and decides to show his bigger balls behind his badge? YOu lose even if you win or proof that you are clean because the fees the CPA or tax lawyer charges are sometimes enough to put a small business out. I am told that fee isn't tax deductable.

Oh, I forgot to add, the CPA said this auditor is a real PITA. He's blowing smoke about the jail time but my concrete man is worry because the CPA isn't doing enough.

No jail time if it is an auditor. And you can negotiate the penalty and back taxes.

If it is an IRS special agent doing the auditing, then yes, there is the potential for jail time.

The real question in my mind is "was there an intent to defraud or avoid". Can he prove there was no intent? Did he truly underpay?


I was audited a couple of decades ago. At the end of the audit they cut me a check. They (the IRS personnel) were very nice during the whole thing, very low key.

Then the IRS audited me a couple more times to see if they could recoup any of that money. It was pretty much my own fault because I forgot I needed to update the refund amount on the following year return so I could pay a bit more additional taxes on the following year return.

Just think if O wins 16,000 more agents! but hey unenployment will drop a little!

What's the difference? When do the big boys come out?

From the cases I've read about in the news, you really have to have tried to evade and avoid before you actually face jail time. Marion Barry, already a convicted felon, didn't even file taxes for five years and he skated with a payment plan. Wesley Snipes went to jail because he flat out said he didn't have to pay taxes and the gov't. likes to make examples out of those types. Everyone else they just want to pay up.

Marion gets away with a lot that would land the rest of us in jail.