I’m sure there are many ways to verify you were dealing with the IRS.
My business partner and I were audited by the IRS right after my husband died. That was also right after that huge hurricane hit Florida in 2004.
Im lucky I guess because between my daughter, the accountants and my business partner, it was settled but it took 1 year and even though I was legal partners in OUR company, which I took over after he died.....
Well are you ready for this? They were questioning the $500,000 cash my partner and I put in together for our company to buy a house my husband was working on when he died.
After a little more than 1 year of us going back and forth we were told by the NEW IRS agent that took over from this one we’d been dealing with is that her superiors fired her, and....all I had to do was to say that I’d “given “ her $500,000 for 1/2 of the house.
By then I was like “Just tell me what hoops to jump thru and I/We will do it.”
I did what they said needed to be done finally and I was happy to be rid of them.
The amount of money spent on lawyers, etc and the fact that I hadn’t even had time to grieve about my husband of 38 year’ death made me go 1/2 crazy.
My late husband was audited before but he was better dealing with them than I was.
Why were so often audited? We think it’s because dealing with so much cash puts up a red flag.
I kept saying how stupid the whole thing was in the first place. Who in the world would give anyone $500,000 just because. But that’s what it took when the new agent took over.
There was a perfect paper trail always showing where the money came from and where it went.
I have excellent accountants and my daughter and her masters degree in business came in handy but my advice to anyone when dealing with the IRS is find out what THEY want and give it to them.
I’ve had a few dealings here and there over the years.
Oh! And by the way, the first agent had me going back more than the 7 years people say you only need. Thank God my husband kept perfect records.
I expect to be audited again next year. My daughter already warned me. I’ve had to give my middle daughter very large sums of money to get her into a new house after her divorce. That alone won’t necessarily set off the red flag....but the fact that I didn’t invest it by purchasing something large with the money will get that flag waving.
I’m ready for them, that’s easy to show. Although, it’s not fun getting audited.
The main thing is to give them what they want and don’t take it personally. They are just doing their job making sure things are the way you say they are.
After all this bla bla from me, I took the time to put this here to make everyone understand they need to do what the IRS is asking and ..again...it is not personal.
Get ready to jump thru the hoops and have those papers ready and then you are done.👌😀
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