Simple Audit Question

  • Thread starter Gary V. Deutschmann, Sr.
  • Start date


Gary V. Deutschmann, Sr.

Hi Gang

I closed my company, filed final tax returns and moved outstate.

Nothing is amiss actually, I received a letter stating that the
auditor wants to see a particular receipt for the purchase of a
machine shortly before we closed up shop.

No problem there as I have the receipt.

The problem is, they set an appointment for me to hand deliver the
receipt to the auditor.

Would not a certified letter containing the receipt suffice, or do I
really have to appear in person?




Wayne Brasch

_, you are in Canada. Why is it you don't use some name in your postings?

Wayne Brasch, CPA, M. S. Taxation

Des Perado

Just send it Registered Mail. Tell the tax boys you are living out of
state now and if they will pay your travel expenses and your normal
hourly billing rate, you will be pleased to deliver the receipt in

I do find it hard to believe that they would insist that you deliver
it to them in person.
Good luck!



Gary V. Deutschmann, Sr.

Hi Des

Thanks, thats what I thought also!

Someone breathing FINALLY returned one of my many calls.
The letter is basically a form letter they use for everyone, without
paying any attention to the mailing address at all.

Their only real concern was why was a business that was soon closing
buying a new machine. They basically just wanted to make sure that I
was not using an old receipt and that the machine actually existed.

The bill of sale to the new owner showed each machine and the purchase
date of each which coincided perfectly with the equipment receipts.

We had not planned on selling the business when the machine was
purchased, it was an integral part of the operation, formerly handled
by an obsolete machine with makeshift additions that were quite faulty
and slowing down operations considerably. The purchase of the new
machine was a good move on our part and increased production while
lowering labor costs.

A car dealer wouldn't have much luck selling a new car with only three
wheels on it!

With the paperwork I FAXed to him, the auditor was appeased!


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