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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2678
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I have been audited on my schedule C - the IRS disallowed all

Customer Question

I have been audited on my schedule C - the IRS disallowed all my expenses because I didn't have much income but i did have expenses to run my business. The fear is they will call my work a "hobby." What kind of lawyer or CPA should I use. One tax lawyer wants to charge me $25,000 to handle my case, when the IRS s disallowed in $23,00. Then he said he could be #25,000 more if we go to court. Is this reasonable. Who can aI turn to?
Submitted: 6 months ago.
Category: Tax
Expert:  Barbara replied 6 months ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.My suggestion would be to find a local CPA or Enrolled Agent to assist you. Both can negotiate with the IRS on your behalf to resolve this issue.I do not believe it will be too difficult to establish the fact that you are in business to make money rather than it being a hobby.The $25,000 fee seems on the expensive side in your instance.Please let me know if I can assist you further.Thank you and best regards,Barb
Expert:  Barbara replied 6 months ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.Best regards,Barb

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