Have a Tax Question? Ask a Tax Expert
Hello and welcome to Just Answer.
I would suggest you only prepare for the items that have been identified in the audit. If the auditor is satisfied with your documentation and accepts the proof you could always do an amended tax return at a later date if you feel that will correct any other issues.
The error is in one of the identified areas, travel.
Well then substantiate to the auditor what documentation you do have to support any travel expenses they will make adjustments in your favor too.
for some of our work, we pass the expenses through to the customer on the invoice. I've been recording that, incorrectly, as income (instead of breaking it out as travel). So, I've been paying the income tax on it. Should i redo it now, or, just get through the audit as is and then re-evaluate it?
go through the audit and then make adjustments.
The IRS would prefer that you learn the proper way to record the transactions.
Is this true across the board? Should I stick with what was reported, and, let them point out the error of my ways as we go through it?
I hope this has helped. I have sat with the IRS on many audits and best thing to do is cooperate and then adjust.
Ok, so, I go with what i reported and then correct based on the audit. Correct?
Ok, thanks. We're done.