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William Ellis, CPA
William Ellis, CPA, CPA
Category: Tax
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Experience:  Over 15 years of experience in public accounting
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Ok my client going through the audit for 08/09/10. In 2010

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Ok my client going through the audit for 08/09/10. In 2010 I changed the corporate structure to an Scorp for this client. The auditor wants to come to the place of business for the Scorp. She already came out for the 2008 self employed income to the place of business. The client is refusing. The auditor is insisting. Who is right. Do we have to let the, come out...again???
Submitted: 4 years ago.
Category: Tax
Expert:  William Ellis, CPA replied 4 years ago.

William Ellis, CPA :

Hello and thank you for allowing us at Just Answer to assist you. What's the reason your client is giving to refuse admittance to the auditor? The auditor should be satisfied with looking at the records at your location unless your client has taken an extremely large home office deduction or is showing a very large inventory of space-consuming items. Do any of these apply?

Customer: replied 4 years ago.
The home in office expense has been verified in the previous audit. Nothing too extraordinary. The inventory is some what extensive (Antique cars) but what is inventory now is not what was in inventory in 2010. So I'm not sure what the purpose is. The auditor has stated she is not qualified to examine scorps, so she is bringing a manager with her. The taxpayer is just done with her. It has been going on too long ( three years).
Expert:  William Ellis, CPA replied 4 years ago.
As long as there's nothing to hide, you should always cooperate with the IRS. If you do not, you'll only raise suspicions.

Does your client HAVE to let the auditor and her manager on the premises? No. But I think you both would be better off if they did.


Bill Ellis
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