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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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how many times in one year can you be audited We were audited

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how many times in one year can you be audited? We were audited in the beginning of this year for 2005 and paid $8,000 because there was a fire in our community (Lake Tahoe, CA; more than 300 homes were burned) and we lost all of our tax records up until 2007. now they want to audit us for 2006, help, laura
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thank you for using Just Answer. Generally, all income taxes must be assessed within three years after the original return is filed. The IRS can audit your tax returns for 2005, 2006, 2007. False or fraudulent return or failure to file a return there is no limit how many years the IRS can go back and audit the return.
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Customer: replied 8 years ago.
I understand this but my question was how many times can you be audited in one year? Can they audit you as many times as they want in one year? I am being audited for the second time this year!
Expert:  Marvin,EA replied 8 years ago.
Under 7606(b) a second examination of the taxpayer's return is prohibited unless written notice is provided by the IRS to the taxpayer.   The IRS can audited you for 2005, 2006, 2007 in 2008. There is no law that the IRS can only audited a taxpayer certain amount of tax year(s) per year. What item(s) on the tax return IRS are auditing? Did the agent tell you why you are being audited for 2006?
Customer: replied 8 years ago.
i don't know what the agent is auditing us for, my husband just called me at work and told me we were being audited again for the second time this year. they audited us for 2005 in March of this year and now they are auditing us for 2006 in October of the same year. I paid $8000 in March because we have no records, (they were burned in a huge fire last year) and we only have tax records from October of 2006 through to December of 2006, (three months) because of the same fire. i guess i am just having trouble believing they can get me two times in one year. Isn't there some kind of exception i can get because of losing all of our tax records in the fire. this hardly seems fair although i know a lot of things aren't fair. thanks for you help, laura
Expert:  Marvin,EA replied 8 years ago.
There is a right to deduction-Cohan rule.

Where a taxpayer's records or other proof aren't adequate to substantiate expense deductions, the taxpayer may be allowed to deduct an estimated amount under the Cohan rule. What was the items the IRS did not accept?