My original post can be read here.
tl;dr-
I'm being audited for business and miscellaneous deductions from 2015. I have a bit of a unique situation, and reddit recommended I seek professional help from a tax attorney or CPA.
So, I was able to meet with a CPA yesterday, but I'm uncomfortable with some of the advice I was given. Here are some of the claims he made:
-I should make an appointment to see an auditor and explain my situation in person.
-If I don't provide proof of all of the expenses claimed in 2015 and agree to pay tax on the difference, I would be audited for 2016 and 2017. Essentially, I would be admitting that my 2015 taxes were done incorrectly, and it would prompt audits for subsequent years. I should therefore go through all of my bank and credit card statements, and find anything that could be construed as a business expense until I have deductions that equal what I claimed.
-I should wait to file my 2017 taxes to figure out what the IRS is looking for in the 2015 audit. Once I know that, I can file 2017 taking itemized deduction that look more favorable.
-The IRS does not want to go to court because they lose more often than not, and don't want to have to explain tax code to a layman jury. My stance, therefore, should be that I do not agree to any additional payments for 2015, because they'll likely drop the case rather than take me to court for a relatively small amount.
-I should retroactively create a log of miles driven, and make it look two years old, so I can justify unreimbursed mileage.
-He can't represent me better than I can represent myself. He'll review my documents and coach me on what to say and what not to say, but he won't actually represent me in front of an auditor.
How does /r/personalfinance feel about this advice? Is it pretty standard? Does this CPA sound sketchy? Will I get in additional trouble for following this course of action?
Thanks in advance.
Submitted February 12, 2018 at 10:11AM by BostonDrivingIsWorse http://ift.tt/2EBcRoE
