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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 12551
Experience:  Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
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hi please I want ask a question about audit , I read that

Customer Question

hi please I want ask a question about audit , I read that If I amend my return and I add schedual c form Audit risk become more , is that correct ? I mean what is the things that make anybody under more risk to be audited in general ?
Submitted: 8 months ago.
Category: Finance
Expert:  Megan C replied 8 months ago.

 

Megan C :

Thank you for your question. My name isXXXXX a CPA, and I will be happy to assist you today

Megan C :

How are you today?

 

The main thing to consider when you are filing your tax return, is that the return is complete and accurate. So, if you need a schedule C you need to file it.

 

I would not say that adding a schedule C would increase your audit risk per se...however you should not file your taxes based on what has audit risks.

 

Please reply to me below and let me know more info about your case. If you have further questions, use the reply button below.

 

Thanks!

 

Megan

Megan C41587.0354944676
Expert:  Megan C replied 8 months ago.
I was having trouble with live chat, so I had to switch to this method. I'm sorry if this causes any inconveniences.

Some things that cuase audit risk to go up include:

1) making more money - those with incomes over $200,000 are more likely to be audited.

2) Failing to report all your income - the IRS receives reports of your income from third parties. Failing to report that income could make you subject to audit

3) Large charitable donations

4) Claiming the home office deduction - this increases risk as the IRS wants to see that you aren't simply claiming personal expenses as business

5) Claiming rental losses

6) Large meal and entertainment expense deductions

7) CLaiming you use a vehicle 100% for business

8) Running a cash business

9) Failing to report a foreign bank account

10) Having cash transactions in excess of $10,000

These are some of the things that increase audit risk. Now, adding a schedule C in and of itself does not increase audit risk. If you have schedule C activity, you should report it accordingly.

Thanks, XXXXX XXXXX me know if you have further questions. If not, please rate my response positively so that I may receive credit for assisting you today.
Customer: replied 8 months ago.

I report business on form on scheduale c ez instead of c and I want to amend it on c one


also what is about if I got CPA to amended my return and sign it for me is this better or affect audit risk .


 

Expert:  Megan C replied 8 months ago.
Thank you for your follow up. I also apologize again for the live chat technical difficulties. There's no increased audit risk going from form C-ez to C. Using a pro will also not increase or decrease your audit risk.

Please let me know if you need anything additional. If not, please rate positive, so that I may receive credit for assisting you today
Customer: replied 8 months ago.

please I had friend of mine advised me to buy audit defense so do you have idea about it ?


 

Expert:  Megan C replied 8 months ago.
Thank you for your follow up. I do not think that audit defense is necessary. If your tax return is correct, then there is nothing to worry about. I wouldn't personally purchase any "audit defense" type products.

Thanks, XXXXX XXXXX me know if you have any questions. If not, please rate me positively so that I may receive credit for assisting you today.
Customer: replied 8 months ago.

but he told me that I will be free of headache because even if my return is correct may be I need help from somebody to deal with Tax people .is that correct ?

Expert:  Megan C replied 8 months ago.
Thanks for your follow up. Here's a good article about audit defense CLICK HERE.

It rarely is worth the price. The headache of trying to deal with the audit defense people is sometimes worse than just dealing with the IRS yourself.

If you're truly worried about audit, you should have your returns prepared by a reputable preparer -- they will handle any correspondence from the IRS.

Please let me know if you need anything additional. If not, please rate positively so that I may receive credit for assisting you today
Customer: replied 8 months ago.

how can I find one please ( reputable preparer )


thank you


 

Expert:  Megan C replied 8 months ago.
Thank you for your follow up. You can find an Enrolled Agent.

Enrolled agents (EAs) are America's Tax Experts. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. - See more at: http://www.naea.org/#sthash.lRc5LeL5.dpufEnrolled agents are federally licensed, and able to prepare your taxes and represent you before the IRS. They take an exam that is administered by the IRS directly. You can find one by CLICKING HERE

You can also find a CPA by going to your state board of accountancy website.

I wish you the best of luck finding a professional to work with.

If no further questions, please rate me positively so that I may receive credit for assisting you tonight.
Enrolled agents (EAs) are America's Tax Experts. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. - See more at: http://www.naea.org/#sthash.lRc5LeL5.dpufEnrolled agents (EAs) are America's Tax Experts. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. - See more at: http://www.naea.org/#sthash.lRc5LeL5.dpuf
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 12551
Experience: Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
Megan C and 3 other Finance Specialists are ready to help you
Customer: replied 8 months ago.

what is about Turbo Tax CPA ?

Expert:  Megan C replied 8 months ago.
Thanks for your follow up. A Turbo Tax CPA is a CPA that works with TurboTax software. It just means they are familiar with TurboTax. They aren't any more knowledgeable than any other CPA.

Thanks!

Megan
Customer: replied 8 months ago.

I found one with 22 years experience , senior tax manager , it looks good and also the reviews are good .


just I need you advice please .

Expert:  Megan C replied 8 months ago.
Yes, this is someone you would want to deal with. Someone who has plenty of years of experience, and who has good reviews. I think you're on the right track.

Thanks

Megan

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