Lucho Posted March 5, 2008 Report Share Posted March 5, 2008 I am helping a new client that is being audited. The problem that I see is that this is probably the third time he will request some extra time to gather more documentation (tomorrow according to the letter he showed me is the final auditing day. I will go with him tomorrow just to let the auditor know that he needs some more document to substantiate some expenses in question. We will take proof of everything he already has. For those of you with audit representation experience, How should we approach the auditor to get the approval for the extra time request. My new client has being trying by himself. and that is why time is running out or maybe out at all (I will know until tomorrow) hopefully, extra time will be granted for him. I am enrolled to practice and wanted to wait some more time to start audit but this came as a surprise and the client needs help right away Any ideas on how to handle the request will be appreciated. Thank you in advance. Quote Link to comment Share on other sites More sharing options...
jainen Posted March 5, 2008 Report Share Posted March 5, 2008 >>he needs some more document to sustantiate some expenses in question<< WHY does he need more time? That's the whole thing. Describe the documents that he will obtain and where they are. Explain why he hasn't succeeded in retrieving them yet (demonstrating a bona fide effort), what he is doing about it now, and what makes him think he'll have any more luck getting them this time. Cover all these points because any one of them could shoot you down. If the documents aren't directly related to the question, or aren't very obviously genuine, or he hasn't exercised ordinary care in managing them -- these are all serious weaknesses in his position. Tell the truth, but it's okay to emphasize certain points. It is much better if some third party or outside event caused the loss of records (he did have them a year ago when he filed the return, right?) But please don't bother with some corny story about the weather. Don't spend more than five minutes and one sheet of paper on this part of the interview. Another important gambit is to move ahead with whatever you already can. Concede or otherwise offer to agree on anything you aren't waiting for documents on. Maybe start with the mileage; it's a lot of work to put that together and she isn't going to believe it anyway. Insist that the return was correct as filed but admit that you can't document it. (The auditor knows that nobody can document mileage, so she fully expects to at least score that point.) Unfortunately, you don't have time to get the client behind this strategy. It will take you a couple of hours to analyze the strong points and prioritize what you are willing to give up. The best you can do might be to just explain that now that a professional is involved you will be able to help the taxpayer understand what is realistic (wink wink) so the auditor knows you are truly close to closing the audit. If you only had a few days more to review the file and this new evidence, please. This has a built-in backup plan. You don't want to say this unless necessary, but the taxpayer has an absolute right to bring in a representative at ANY time. By the way, how much time is your client demanding? I wouldn't try for more than 14 days unless you have a really really great story. I wouldn't be surprised to only get 'til the end of this week. And speaking of time, you have now used up another five minutes of the auditor's valuable schedule, so you have reached the limit. Thank her and leave. Fax her a confirmation late in the afternoon. Quote Link to comment Share on other sites More sharing options...
Lucho Posted March 5, 2008 Author Report Share Posted March 5, 2008 >>he needs some more document to sustantiate some expenses in question<< WHY does he need more time? That's the whole thing. Describe the documents that he will obtain and where they are. Explain why he hasn't succeeded in retrieving them yet (demonstrating a bona fide effort), what he is doing about it now, and what makes him think he'll have any more luck getting them this time. Cover all these points because any one of them could shoot you down. If the documents aren't directly related to the question, or aren't very obviously genuine, or he hasn't exercised ordinary care in managing them -- these are all serious weaknesses in his position. Tell the truth, but it's okay to emphasize certain points. It is much better if some third party or outside event caused the loss of records (he did have them a year ago when he filed the return, right?) But please don't bother with some corny story about the weather. Don't spend more than five minutes and one sheet of paper on this part of the interview. Another important gambit is to move ahead with whatever you already can. Concede or otherwise offer to agree on anything you aren't waiting for documents on. Maybe start with the mileage; it's a lot of work to put that together and she isn't going to believe it anyway. Insist that the return was correct as filed but admit that you can't document it. (The auditor knows that nobody can document mileage, so she fully expects to at least score that point.) Unfortunately, you don't have time to get the client behind this strategy. It will take you a couple of hours to analyze the strong points and prioritize what you are willing to give up. The best you can do might be to just explain that now that a professional is involved you will be able to help the taxpayer understand what is realistic (wink wink) so the auditor knows you are truly close to closing the audit. If you only had a few days more to review the file and this new evidence, please. This has a built-in backup plan. You don't want to say this unless necessary, but the taxpayer has an absolute right to bring in a representative at ANY time. By the way, how much time is your client demanding? I wouldn't try for more than 14 days unless you have a really really great story. I wouldn't be surprised to only get 'til the end of this week. And speaking of time, you have now used up another five minutes of the auditor's valuable schedule, so you have reached the limit. Thank her and leave. Fax her a confirmation late in the afternoon. Jainen, thank and thank you again for this excellent comment. Quote Link to comment Share on other sites More sharing options...
GERALD Posted March 5, 2008 Report Share Posted March 5, 2008 Jainen has excellent advise on this issue. Those of us with representation experience know that in situations such as this, straightforwardness is almost always the best approach. If the client has a weak excuse in some area, admit it, but as Jainen points out, say that now that he has professional help, the case will be resolved promptly. The auditor is expecting both of you to lie so keep him/her off balance. My last representation was about six weeks ago. A wish I didn't have client came in with a big box of papers on his mother who had not filed returns in years. He is her guardian and POA. Probably 75-100 letters from the IRS covering a five year period. The issue was stock sales in her brokerage account, not reported. Every year netted out to losses, lady didn't owe anything, but obviously, without filing IRS had no way of knowing that. They were within THREE DAYS of levying her brokerage accoun for over $60000. He wants to know what I can do!!!!! I quoted him an obscene fee, payable in advance, told him I could prepare the returns that afternoon and to meet me at the nearest IRS office the next morning. We were assigned to a nice lady who listened very patiently to my explanation. The client excused himself for a few minutes and when he left the room she asked me how this situation got this far. I told her he was an obnoxious know-it-all, and a total jerk and a--h---. When she got up off the floor from laughing, she said, rules prohibit me from commenting on that. I'll see what I can do. She got the levy stopped. Gerald Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 5, 2008 Report Share Posted March 5, 2008 be honest, tell her you are going to stay on top of it and will hound him to have everything available so the audit can be done in one stop. BUT you are swamped with tax season and would like till the end of April. I never had an agent deny this. besides if you are in a major area like i am the agents calendars are full for at least a month in advance and you will get your time. an alternative is to have the first meeting, give what you have and then you will get an request for additional info which well take a few weeks to get and at least a month for you to answer Quote Link to comment Share on other sites More sharing options...
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