FWmaker Posted June 17, 2008 Share Posted June 17, 2008 Yup. Defending 2 clients at IRS Appeals level (that's 1 level up from the main audit level and just before trying the case in Tax Court). Not only that, it was in Newark, NJ. (not known as a garden spot of the good ol' USA). ISSUES: Both clients (considered wealthy) were being audited for the same issues: Medical Expenses (neither had any, so it was no issue - don't know why the IRS selected this issue); Charity (Cash, Check, etc.) - in the 10s of thousands; Charity (Non-cash - i.e. donated clothes, furnishings, etc.) - between 5-10 thousand; Unreimbursed Employee Business Expenses - 17 thousand on one, 36 thousand on the other; Miscellaneous Itemized Deductions - between 5-10 thousand. Both clients had suspect documentation. One couldn't produce records from 2 credit cards (out of business and he didn't save originals). Both had VERY little covering cash contributions. Both had pretty good Non-cash charity documentation (not great, but good). Both had documentation supporting about 70% of the Misc. Itemized Deductions. Conservatively, 15K - 20K in tax was at issue (before interest & penalties) on the combined Federal & State level. Not to mention, if there was a moderate tax deficiency, both would have been subject to additional years being opened. OUTCOME:: After alot of hemming and hawing and psychological warfare (I've dealt with this Appeals Agent before), I got the IRS to give both taxpayers a complete conscession on all issues. It was not easy, I'll tell you. In fact, I am physically drained and exhausted. So, the taxpayers owe $0 to Uncle Sam, we do not have to amend any state returns, the IRS will not open other years (probably the most important item, and I did not get mugged in Newark. The clients will gladly pay for my services. Quote Link to comment Share on other sites More sharing options...
twiley Posted June 17, 2008 Share Posted June 17, 2008 I should have looked you up 8 years ago. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted June 17, 2008 Share Posted June 17, 2008 Congratulations.......those unreimbursed employee business expenses sound, um, interesting. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted June 17, 2008 Share Posted June 17, 2008 We're supposed to keep records of expenses? Quote Link to comment Share on other sites More sharing options...
Bier Meister Posted June 17, 2008 Share Posted June 17, 2008 ick... nice job Quote Link to comment Share on other sites More sharing options...
Puddy Posted June 17, 2008 Share Posted June 17, 2008 Quote Link to comment Share on other sites More sharing options...
Big John Posted June 17, 2008 Share Posted June 17, 2008 After all the time , you finally the IRS. congrats Quote Link to comment Share on other sites More sharing options...
nogohawk Posted June 17, 2008 Share Posted June 17, 2008 Cheers Quote Link to comment Share on other sites More sharing options...
loyalboyd Posted June 17, 2008 Share Posted June 17, 2008 Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted June 17, 2008 Share Posted June 17, 2008 You sound like a lawyer I might actually like. I'm always worried about the donations, particularly the clothes, furnishings etc... Quote Link to comment Share on other sites More sharing options...
muck Posted June 17, 2008 Share Posted June 17, 2008 Note to Self: YoMama isn't the only huddler who is a knee to the IRS's crotch. Quote Link to comment Share on other sites More sharing options...
FWmaker Posted June 17, 2008 Author Share Posted June 17, 2008 You sound like a lawyer I might actually like. I'm always worried about the donations, particularly the clothes, furnishings etc... Nope, Perch, not a Lawyer. And Muck - my knees aren't dirty. I do lose sometimes. But I've got a VERY good track record and a great reputation w/ the IRS. Quote Link to comment Share on other sites More sharing options...
The Holy Roller Posted June 17, 2008 Share Posted June 17, 2008 I might have to switch to FW. My tax advisor says that lying to the IRS is like lying to the devil. Quote Link to comment Share on other sites More sharing options...
H8tank Posted June 17, 2008 Share Posted June 17, 2008 Uhmmm, can you fly to Tulsa? Quote Link to comment Share on other sites More sharing options...
polksalet Posted June 17, 2008 Share Posted June 17, 2008 Nope, Perch, not a Lawyer. And Muck - my knees aren't dirty. I do lose sometimes. But I've got a VERY good track record and a great reputation w/ the IRS. Get ready for a strange IRS question. I am involved in a real estate deal with them and do not know where to start. Quote Link to comment Share on other sites More sharing options...
muck Posted June 18, 2008 Share Posted June 18, 2008 Get ready for a strange IRS question. I am involved in a real estate deal with them and do not know where to start. Technically, that is not a question. Its a statement. Quote Link to comment Share on other sites More sharing options...
yo mama Posted June 18, 2008 Share Posted June 18, 2008 You sound like a lawyer I might actually like. I'm always worried about the donations, particularly the clothes, furnishings etc... Quote Link to comment Share on other sites More sharing options...
polksalet Posted June 18, 2008 Share Posted June 18, 2008 Technically, that is not a question. Its a statement. The question is yet to be ax. Quote Link to comment Share on other sites More sharing options...
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