jasdlm Posted July 27, 2009 Report Share Posted July 27, 2009 The first audit (the one with the schedule C/LLC/Schedule A mess) ended as well as could be expected, I think. The agent accepted some expenses and disallowed many (which I expected). She did allow the K1 loss without any questions. She did 'audit' 2008 after finding the Schedule A (2106) mistakes on 2007 (just as John said she would). She did this by using a 'formula' based on 2007 rather than going through the return. I have never heard of this. However, it was very much to my clients advantage given that the K1 loss that would have gone on the 2008 return (again left off original) was very small, unlike 2007. In the end, client ended up owing about what the IRS had suggested in its examination letter, except that it took 2007 and 2008 off the table, so 'two for one', essentially. Client was very happy. I want to thank everyone again for the excellent advice. I am so appreciative of all who commented. One more to go (this Friday). Thanks again. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 27, 2009 Report Share Posted July 27, 2009 Way to go! Quote Link to comment Share on other sites More sharing options...
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