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my restaurant received IRS letter regarding my business is

underreporting the gross receipt, what...
my restaurant received IRS letter regarding my business is underreporting the gross receipt, what should i do?
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Answered in 18 minutes by:
11/1/2013
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,711
Experience: 35 years tax experience, including four years at a Big 4 firm.
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PDtax :

Welcome to the site. I'm PDtax, and was prompted to assist by the site.

PDtax :

This is a new program started by IRS late last year for taxpayers who receive 1099-K from their credit card and bank transaction processors.

PDtax :

IRS uses four form letters for these inquiries, suggesting remedies for repairing the discrepancy.

PDtax :

You can review your records, including a review of the gross sales line on the business tax return you filed, and compare that amount to the 1099-K you received. That is likely the reason for the letter.

PDtax :

Once you review your records, you can verify the correctness of the return you filed. If it is correct, a reconciliation comparing the amount IRS expected with the amount reported will likely satisfy IRS.

PDtax :

If instead there may be additional receipts to report, I suggest a review with your tax professional who prepared the return, and review your options.

PDtax :

Thanks for asking at Just Answer. I will be glad to address any follow up you may have. If this covers things, positive feedback is appreciated. I'm PDtax.

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,711
Experience: 35 years tax experience, including four years at a Big 4 firm.
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PDtax
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PDtax, Certified Public Accountant (CPA)
Category: Tax
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4,711 Satisfied Customers
Experience: 35 years tax experience, including four years at a Big 4 firm.

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