Has anyone been audited by your state ? How did it go ? What was your experience ? Good bad, treated fairly, shitty ?
I've got one next week so im bringing as much as I can and they can sort it out. Personally, I don't trust them from prior experiences. Anything you say will be used against you, without validation.
Use/abuse your CPA on this one. Most audits will treat you respectfully but make no doubt, they will dig up -everything- pertinent and if your records aren't tight, it will cost you money and time.
IzzyG wrote:
Use/abuse your CPA on this one. Most audits will treat you respectfully but make no doubt, they will dig up -everything- pertinent and if your records aren't tight, it will cost you money and time.
Remember - a tax agent can tell you BIG lies - and get away with it. You can't, or you get nailed.
That being said, the advice by others about bringing your CPA is spot on.
This kinda sounds like a sales tax audit. They will want every trade invoice, every bill you issued, and all your checking info.
And, don't forget, they have access to sales tax info from many states on what you purchased.
As a CPA...I agree with bringing a CPA, or better yet schedule the audit at the CPA's office. Even if you don't use a CPA, you may be able to hire one to represent you (if there is enought time).
Otherwise, make sure you are update your knowledge on nexis, your states sales tax laws (assuming this is a sales tax audit).
