I got Audited...

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Jack English
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Joined: 24 May 2009
Posts: 62
Location: San Diego, California

PostPosted: Sun Jul 12, 2009 4:12 pm    Post subject: I got Audited... Reply with quote

this past year. Very minor audit, I think it was my travel and car mileage. I just wanted to share this info with you.

I was audited for 2006 and 2007 and the lady said if you show everything fine for 2006 we won't even go into 2007. (2006 was my biggest $ making year to date).

Not sure if you have ever been audited or not, but my lady that was doing this started out as this big sweet teddy bear and as things moved forward she quickly turned into such a b-tch...

1. I did not have a mileage log on all my business miles. I had to go back to 2006 and match up all my receipts (gas) and put everything into place. This was soooo tedious..

2. Regarding all my travel she pretty much yelled at me: "How do I know
these are travel trips and not vacations". I replied, "I wish they were vacations, I can't afford to go on vacation". She told me to have my boss at the magazine that sent me to all these locations from around the world, to send her a letter stating, yes we had Jack English go to such and such locations. (that was easy)

Some other things I have learned that you may or many not know:

A. When you travel somewhere for anyone that has hired you, print out the email that where it says: Jack we would like to send you to France for 2 weeks. This way you can show proof that this is a business trip.

B. When you travel put all your receipts from that one trip into a envelope and wrtite down the exact dates and towns you were in.
(example: june 5-10 orlando florida june 10-15 miami florida). You will be granted a perdium for those dates and those locations.

C. If you are on a business trip say in Vegas, but you are sleeping on your friends floor. You are still eligible of a perdium. Meaning if the 1 day perdium grants you $100 for 1 night in Vegas, but you only spent $50 you get the $100 perdium.

If I can think of anything more I will write it...
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Joined: 21 Aug 2008
Posts: 23
Location: Oceanside,Ca

PostPosted: Sun Jul 12, 2009 6:07 pm    Post subject: Reply with quote

Hey Jack,
I got audited last year at the IRS building in San Marcos. Is that where you were at? I had a big lady that started out all bitchy and then ended up being really cool and let a few things slide. I had all my ducks in a row when I went in with a good attitude as well which I think went a long way so she didn't have much to say anyway. I think I ended up having to pay $350 for writing off dry cleaning that was not allowed.
David Troyer
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Brooks Ayola
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Joined: 08 Mar 2006
Posts: 542
Location: Chatsworth (Los Angeles), CA

PostPosted: Mon Jul 13, 2009 6:32 am    Post subject: Reply with quote

One of the great reasons to use a good accountant. I was audited for these same things about ten years ago and I just had to fill out my calendar to get the milage right, then handed that and a big envelope of receipts to my accountant who called me about a month later to tell me everything was cool.
Brooks Ayola
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Tyler Mallory
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Joined: 04 Dec 2008
Posts: 69
Location: Chicago

PostPosted: Fri Jul 17, 2009 3:35 pm    Post subject: Reply with quote

The best defense is always to drown them in paperwork. They love paperwork. Fortunately, everything we do comes with a good paper trail, from receipts to e-mails. The key is to keep up with it all year long, as you go. That way, it can stay organized and accurate and you're ready if they ever call.
I once got audited because they thought I had failed to report over $90,000 in income. Turns out someone at the IRS has entered one of my 1099s wrong. They didn't enter a decimal point and instead of recording a client who paid me $920.00, they entered it as $92000. You can imagine how fun that was! One phone call and a few faxes of the proper paperwork and it was all cleared up.

Jack, with your kind of work, you tend to shoot in places that can also be popular vacation destinations. Your advice of keeping all the correspondence is spot on. Keep a copy of any publication of the work too. They have red flags for trips to various locations at certain times of the year, corresponding to typical vacation travel.
Chicago Photographer
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Joined: 28 Mar 2009
Posts: 28
Location: New York City

PostPosted: Thu Aug 13, 2009 1:52 am    Post subject: Reply with quote

I got audited many years ago and learned a lot. One of the most important is to indeed keep records and original receipts fo everything. You must keep a date book and enter as much as possible (milage on rental car, food - name and location of restaurant - and like that.

I had a really "challanged" lady. At one point she turned to me with a handful of reciepts and actually said "I can't accept these."

Me: Why?

Her: " They are not in English. I can't read them."

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