USA IRS Harassment through multiple audits and levies

[Veronica Hicks]

I have experienced ongoing harassment by the IRS that won't stop. I am experiencing a financial hardship because of the difficulty that this bizarre behavior is causing because I cannot focus on my business, clients and employees.

In 2010 I filed several back tax returns prepared by my friend who is a CPA. She made multiple errors on the returns that resulted in an audit in which years 2006 - 2009 were audited and this began in 2011 and concluded in late 2013.

In 2014 I was noticed that I was being audited yet again for 2010. The revenue agent that was assigned to my audit spoke horrible English and appeared to be completely inept. (Which I later found was the case in others' audits from a tax attorney that I hired).

In the 2010 Audit, all substantiation to support revenue (which perfectly tied to revenue) and expenses for which all receipts and business deductions were further substantiated and proven were completely ignored.

Immediately following the 2010 audit, I was noticed that 2011 and 2012 were being audited. I received a rambling request for every piece of information known to man which was most unreasonable and requested to be produced in a matter of a week. When the attorney I hired (which I later found out that was on the IRS' s--t list for being rude, condescending, etc) requested time and clarification and a reasonable time for the conducting of the audit (while berating the agent) it went ignored by the agent and the agent's manager. Information was also provided to the IRS describing the hardship that this ongoing harassment was causing, including health problems, there was no relief in the request and as a result, he requested they just issue a notice of deficiency and the RA did.

Within 1 week of filing the notice of deficiency for 2011 and 2012 I have been been noticed that now 2013 is being audited with the same unreasonable demands by the same inept Revenue Agent.

Three notice of deficiencies (which were all erroneous and have been petitioned in tax court however those petitions were just made in the last week).

The hardship that dealing with these tax matters, ongoing levys and liens have caused such a severe financial hardship that I cannot even manage my business and earn income for dealing with these matters.

How can I get the 2013 Audit stopped and get on my feet so to begin to earn a living again?

 

[hope]

Once you are audited,you will be closely watched and probably audited again.

 

[Kerry Claxton]

Hey here is an idea file your returns on time in the first place and they would not have been able to audit 2006-08 in 2011. Another idea hire a competent person to do your returns if you cannot prepare them yourself. I find it doubtful that you had no clue "mistakes" were made on your return because unless you are a terrible business person you should have an idea of your net income and if your reported income is significantly different enough to cause an audit it should have been obvious to you that there was an issue with the returns, but that is right you didn't have to pay the taxes & penalties you owed so you didn't care right?

When an auditor finds large deficiencies on a return during an audit it in standard procedure to open audits on any and all years that are open under the statute of limitations so nobody is harrassing you, you got caught cheating on your taxes and these are the consequenses. As a forewarning I would suggest your 2014 return be bullet proof because if they are finding issues on every years return they are going to continue auditing every year you file, so stop cheating on your taxes and maybe they will stop auditing you, but you are not going to get the 2013 audit cancelled. If on the other hand they had audited 2011 & 2012 and returned a no change audit report you could have the audit cancelled.

As for your claim that the requests for documentation is unreasonable do you actually understand that all income is taxable unless expressly exempted and deductions are allowed only if specifically authorized by the IRC and substatiated by the taxpayer? If you did not claim any deductions for which you do not have substatiation for and included all your income, including the cash payments you received and put in your pocket, including the required who where and why for any M & E expenses claimed and mileage log for any auto expenses claimed detailing where you went and what business reason you went for and did not claim expenses just because you had a receipt for something that was not related to the business in any form you would have no issue with an audit and it would have stopped after the first audit most likely.

Also if you are going to comment on someones English skills it is probably a good idea to make sure your English skills are impecable and since I can guarentee you that you were not noticed but actually notified regarding the additional audits I do not think you qualify.

Kerry Claxton, CPA

 

[Shannon]

Kerry - I find it very hard that you are a practicing CPA and talking so condescending to people. I am a CPA as well working for the Big 4 and would get fired for writing that kind of response. Also, you clearly are making assumptions and do not know what you are talking about. Here are a couple things to consider:

1) Under the taxpayer bill of rights, Veronica is entitled to clear communication of her issues to her. If she can't understand the auditor, she is entitled to another one regardless of her communication skills (of which you are making an assumption)

2) Documentation requested can be unreasonable under the 'burden of proof' rules. I had a client get a letter where they requested receipts in chronological order and run with a calculator tape adding them up. In this day and age??? Unreasonable.

3) If Veronica knew exactly what she was doing with her return and where everything flows and is limited / not limited then should wouldn't need a CPA like you...well in this case I would argue nobody would want a CPA like you. The tax code is thousands of pages...even my firm has to call around to other experts to get answers to questions and we are a national Fortune 500 company

You are not thorough in your process...at a minimum you are not a nice or helpful person. Do you work for the IRS by chance?

 

[DTA93433]

A couple of things here...(1) why didn't the taxpayer immediately follow up with her friend/CPA who prepared the returns in the 1st place, (2) although I understand we're all human (and make errors), I find it hard to believe that the CPA "made multiple errors on the returns that resulted in an audit....", (3) "In the 2010 Audit, all substantiation to support revenue (which perfectly tied to revenue) and expenses for which all receipts and business deductions were further substantiated and proven were completely ignored" - this I have never heard of; the only thing I can think of is that the deductions (expenses) were NOT in fact :substantiated" in the first place, (4) I'd like to know what IRS "t-list" your lawyer is on (for being rude and condescending) - I've never heard of such a list and (5) lastly, I might suggest that if the taxpayer feels she is not be treated fairly by the Revenue Agent, I'd suggest contacting TAS (Taxpayer Advocate Service). Best of luck. But as Kerry said, from now on file/pay your taxes ontime and correctly and you'll never have this problem again.