Amedeo Montecillo
Rookie
- Sep 22, 2014
- 1
- 0
- 1
Lucky me. I came home from vacation last spring to find a letter from the IRS alerting me that they were auditing my 2011 tax return--specifically, my Schedule C (profit or loss from business).
No problem! I thought. I'm honest and organized.
Ha! Although my intentions are honorable, I do make mistakes. And it turns out my organizational system--dumping all my tax documents from the past decade into a big box--left much to be desired.
Fortunately for you, my nightmare is your gain, as I learned a slew of valuable lessons during the audit. I contacted my accountant and had him outline some goals. First was to minimize my financial liability for the year under investigation by convincing the auditor that I'd reported all income and that all of my expenses were justified. Complete records would be my best defense against additional taxes and penalties (although I found out I needed to do a better job of organizing them).
