Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I have been audited for business property taxes for 2016 &

Customer Question
I have been audited...

I have been audited for business property taxes for 2016 & 2017. How far back can the auditors go to gather information. Tennessee Sales and Use auditors are restricted to 3 years. These guys are looking at depreciation schedules and info as far back as 2009

Accountant's Assistant: Has anything been filed or reported?

Yes

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

Have received audit results and cannot figure what potential liability is. Don't know if total appraisal variance is in addition to what I originally filed.

Submitted: 5 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 10 minutes by:
11/17/2017
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 5 months ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,171
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Hello!

My name is ***** ***** I will be able to assist you today.

The IRS can generally, go back as far as they need to in order to assess the depreciation that was "allowed or allowable," but not taken.

"Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don’t go back more than the last six years."

https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits#far-back

_____

You do have rights:

  • A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.

Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.

____

"Don't know if total appraisal variance is in addition to what I originally filed."

If you are unable to obtain the original depreciation schedule you used in 2009 then you will want to find your documentation which proves your cost basis when will be the starting point for your depreciation .

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 5 months ago

Your original purchase price is generally, your cost basis for which you start the depreciation schedule.

Ask Your Own Tax Question
Customer reply replied 5 months ago
this is not IRS, This is shelby county Tennessee tax Appraiser!
Customer reply replied 5 months ago
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 5 months ago

The same general guidelines apply to state auditors.

Are they proposing a reassessment of your property ?

Ask Your Own Tax Question
Customer reply replied 5 months ago
make sure the lawyer has knowledge of Tennessee law. Is there a statute of limitations on collecting property tax information in Tennessee.?Tennessee Sales & use auditors can only go back 3 years.
Tax Professional: Shan-Nel Simmons, Enrolled Agent replied 5 months ago
Shan-Nel Simmons
Shan-Nel Simmons, Enrolled Agent
Category: Tax
Satisfied Customers: 43
Experience: Tax Pro and Founder at Nel's Tax Help,LLC
Verified

Tennessee statute of limitations to assess (add) additional taxes is three years (See here for the actual state law https://law.justia.com/codes/tennessee/2016/title-67/chapter-1/part-15/section-67-1-1501/) which is the same as the IRS.

However, since this is property taxes, the appraiser is probably attempting to see the original value of your business assets. Therefore, although additional taxes cannot be assessed on tax years older than 3 years back, auditors of any level of government are allowed to look at whatever documents (regardless of how old) if those documents will help or impact current assessments. I would ask why the appraiser need the documents.

All the best to you! Please leave a 5 star rating and enjoy the rest of your day.

Ask Your Own Tax Question
Was this answer helpful?
Ask Shan-Nel Simmons Your Own Question
Shan-Nel Simmons
Shan-Nel Simmons
Shan-Nel Simmons, Enrolled Agent
Category: Tax
Satisfied Customers: 43
43 Satisfied Customers
Experience: Tax Pro and Founder at Nel's Tax Help,LLC

Shan-Nel Simmons is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I have been under state of XX audit with statute of
I have been under state of XX audit with statute of limitations ending on in early may 2018. I just got a revised preliminary audit repot (no assessments) on here in late April 2018 and this new preli… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Is there a statute of limitations on fraud, court cases? A
is there a statute of limitations on fraud, court cases? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I recently received an audit from the IRS for tax years
I recently received an audit from the IRS for tax years 2014/2015/2016. I closed out 2014 because it was really simple. I was practically unemployed most of that year. Started my own business contract… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Does 1250 depreciation recapture rules apply if a property
Does 1250 depreciation recapture rules apply if a property is sold at a loss AND depreciation was not taken on the property. The difference between the adjusted basis (had depreciation been taken) and… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
It has to do with depreciation on rental property.
It has to do with depreciation on rental property. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
I have a tax liability with the State of Wisconsin. Can the
I have a tax liability with the State of Wisconsin. … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
Non-for-profit collects sales tax on some of its sales in
Non-for-profit collects sales tax on some of its sales in NYS. When this NFP files Sales tax return, what should it put in Gross Sales field? Overall Gross Income that included membership dues, donati… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,943 satisfied customers
How are UTMA assets taxed by the IRS after the age of
How are UTMA assets taxed by the IRS after the age of transfer … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My company was audited for sales and use taxes for the
My company was audited for sales and use taxes for the period from 1/1/12 through 12/31/14. The state claimed that we failed to collect the proper amount of tax and determined in 2017 that the amount … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
931 satisfied customers
Is there a statute of limitations on owing State taxes -
Hello - is there a statute of limitations on owing State taxes - Maryland … read more
Carter McBride
Carter McBride
LLM
967 satisfied customers
Is there any tax benefit to depreciating a rental property
Is there any tax benefit to depreciating a rental property held in an LLC in a Solo 401k? Do I even need to depreciate at all since the balance is below $250k?If there is no benefit, is there some way… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
According to irs I owe sales tax starting in 1994 for
according to irs I owe sales tax starting in 1994 for 4,000.00 disputed ownership now they want 101,000.00 in back sales tax plus interes and penalties. is there a staue of limitations or what can I d… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have underreported depreciation on an asset because I have
Hi,I have underreported depreciation on an asset because I have misclassified the asset under the wrong asset class (it should be 15 year qualified restaurant property and I have it as 39 year propert… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How do I figure out depreciation for my income tax return? A
How do I figure out depreciation for my income tax return? A friend recently died owning tillable and productive farmland with no buildings. The farmland was appraised by a licensed appraiser. He did … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
931 satisfied customers
SC Business Personal Property Tax If a business is based in
SC Business Personal Property Tax If a business is based in Charleston SC does the county require a business personal property tax listing completed each year? Thanks, JW… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
Looking for the statute of limitation on the collection of
looking for the statute of limitation on the collection of WI taxes. in particular for withholding taxes from 21 years ago … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Wanted to know if there was statute of limitations on ga
Wanted to know if there was statute of limitations on ga back taxes … read more
Chad EA, CFP ®
Chad EA, CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
2,171 satisfied customers
Is there a statute of limitation for sales tax in ohio?
Is there a statute of limitation for sales tax in ohio? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,943 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x