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Yes, it is the response of the intial aduti. I have provided the receipts and documentation requested in the initial audit. Now the examiner has determined that because I have shown losses in 2007,2008,2009 2010, 2011 and 2012 ( Tax year in question is 2010). Based on this assumption that I am not enganging in attempting to make a profit. But the rules governing travel agents are different becase travel agents business it to travel. I am an engineer who has a home based internet travel agents
Based on the information provided, If I challenge the IRS, will they audit other tax years once I appeal the decision. Based on your expertise and opinion is this an avenue I should seek, by challenging the IRS.
I live in Florida. I am seeking a seasoned tax audit professional. Are your service available or can you endorse a colleague. In addition, what are the reasonable fee for a incident with these particulars.
Thanks for your help.
I have few more question. Can the IRS go back and disallow the schedule C from previous years before 2010 (2007, 2008, 2009 and 2010). I have an attorney who is trying to convice me of this. How many years can the IRS go back and audit a home business.
I asked the questions because my attorney (not sure of her experience level is trying to convince me that the IRS will expand the audit. They are only auditing the 2010 schedule C. I have this internet based travel agency since 2007 until now. I have garnered revenue but due to the nature of the business. My losses are more than my profit. My attorney is trying to convince me this is a complex matter, when the IRS is only auditing my schedule C for 2010.
I have spoken to a few different legal sources and most of them have told me to settle and are trying to help me establish a payment plan with the IRS and not incur their wrath. I have been told tha the IRS will not allow me to travel at discounted rate and write it off as a business loss. I am truly confused and do not know how to resolve this issue.
I have one final question. I conculded to settle with the IRS. What is the likelyhood that they will audit me in 2011 and 2012? You have indicated you do not think they will expand the audit.