H&R Block for 1099. Lease operator.

I filed my taxes in 2009 for 2008... low and behold in 2011 I get an audit letter from Utah.

They do not go over every item when you file, either Electronically or by paper. If you file by paper they scan them into the system and destroy the paper copies.. so at this point every one's taxes are in the system. They have certain items that will "Flag" a response... and guess what - Home Office is one of them.

You claimed some items that everyone is mentioning that you may have a difficult time justifing.

Home Office - basically what you mentioned it is an extra room that you visit when you are home. A home office is what you work out of almost daily to do your job. I claim home office because it is a home office. I can claim a % of house utilities per the IRS based upon sqft of house to sqft of room.

"However, to take this write-off, you must use the space exclusively and regularly as your principal place of business. That makes it difficult to successfully claim a guest bedroom or children's playroom as a home office, even if you also use the space to do your work. "Exclusive use" means that a specific area of the home is used only for trade or business, not also for the family to watch TV at night."


Your personal vehicle. Normally not claimable unless used for a business or business related.

You can claim Cell phone bills per the example I gave above. I claim them all the time if I use my personal cell phone for business.

You paid extra for H&R Block to make up any differences in taxes if audited. How long is this good for?

I believe IRS can audit you up to 3 years...

http://taxblawg.net/2010/06/14/how-long-does-the-irs-have-to-audit-your-return/

The audit is a long drawn out process that is done via snail mail. You can call them, but everything is done by mail. Expect once you mail something for them to process it two months after they receive it.

No one is saying you are Dumb for using an outside source for your taxes. I use a CPA and then I watch what she is trying to claim. As mentioned before... Lawn service on a house that is not a business cannot be claimed. She tried to claim it. I looked it up on the IRS website and called them. It is not a claimable deduction since it is a house and not a business.

Outside sources do make mistakes. Look at what they claimed on your tax forms and research with the IRS.

You do not want to be audited 3 years from now and not be able to proof what they claimed. Penaties and interest are added from the date of your filing, plus what you might owe.

Log books,,, KEEP THEM.... this is the only proof the IRS will accept you are OTR during that tax year.

Get a letter from your company stating what is reimbursed and what is not reimbursed. Daily meals is the big item... I spend $400 on a lawyer to convince the two companies I worked for in 2008 to send me those letters.

With the IRS it is all about proof. No proof, then you lose.

http://articles.marketwatch.com/201...it-rate-audit-risk-national-taxpayer-advocate



Mark

 

This should be the first clue that you have problems.

I have prepared returns professionally for years and NEVER have had this happen. The return is always accepted.

This means that their computer system found an error when filed. Expect to see some documentation in the mail. Later you might even receive notice of closer review.

 

One thing to remember. Just because the IRS accepts a return, does not mean it is in stone and will not be examined again. They have increased their audit percentages and are now looking at the trucking industry.

 

Why would H&R Block give you $4500 back ? Shouldn't you have only gotten $1200 , the difference between the $5700 and $4500 ?
Now something I have never seen mentioned here that could help some drivers . If you have a spouse that owes money to the IRS you can keep them from taking your share of the return by filing an Injured Spouse form .
If you would have gotten a refund filing separately and your wife would have gotten no refund you should get your entire refund . http://www.irs.gov/taxtopics/tc205.html

 

They have other collection process ways available along with penalties. Their favorite is the accuracy penalty of 20%.

I am in appeal on my audit. The auditor is not following IRS revenue rulings.

They went after many things that were not even possible problems that are on your return. The auditor plainly did not like any deductions including fuel.

The audit for me is 2010 and 2011. Letter announcing the audit was in October 2012.

 

What I was questioning was why you would have a $4500 deposit in your account from HR Block