I haven't been audited, but my clients have. The best is when a new client retains you simply because they are being audited and suddenly their previous accountant is "unavailable". I remember sub-contracting to my mom's firm, and my 1st experience with a business audit was this guy that had 4 companies & was being audited for all 4, for the 3 prior years...and NONE of his stuff was in order...uggg...
Audits...good for my bank account but what a PITA! Usually (at least here in Canada) you end up with some jerk on a power trip.
I learned early on in the business from my mother, that a good accountant or bookkeeper will tell you that their job is to "audit-proof" you. As long as you've disclosed everything, you have nothing to worry about.
LOL @ that article - trying to write off a bedroom set as office furniture. Unbelievable what people try to claim!
~ Melissa ~
‎"We need to find the courage to say NO to the things and people that are not serving us, if we want to rediscover ourselves and live our lives with authenticity."
- Barbara de Angelis
I've been mini-audited once. They just asked for proof that I paid my rent. I found out after that 3 of my 5 roommates got the same audit, so likely they were looking at the landlords rather then the students (6 of us living in the same house).
Yes I have been audited personally and for my business. Both recently after my divorce. I don't blame the government though. What a mess.
My business: Not only did my ex not complete all the accounting work he said he did(like all my liquor bills for a year and a half, I guess he put it off because it comes right out of my account and you don't have to write a cheq to pay it) he didn't file the taxes. I suppose he didn't file them because there was so much work that wasn't done to submit it to an accountant. After I completed all the work(many hours/nights at home by myself after the divorce) and we filed the taxes. I found out we owed back taxes, penalties, and interest. That was the major part of my $30,000 debt. It included personal taxes from us selling a house we did as an investment that had no tax paid on it. Which reminds me. What the hell was he doing the whole time at home he said he was working??!! FYI I now have everything completed, filed, and up to date. I rock! So yes, we got audited. Our business had my store and his consulting business combined into one. I had to provide receipts and a whole bunch of things. I had my accountant do it. It actually turns out, we got $400 back(this was gst audit). It was incredibly stressful.
The next year, after our divorce, we got audited personally. Because of the way we sold our investment property and spit the kid deductions up they were very curious. I don't know why as I had just paid them $6000 personally the year before for all the tax I owed. OH and get this. We had to provide passports and birth certificates for our kids. They knew about my oldest DS but not the youngest one, I had to prove he existed. He was 8 at the time and we had put him on previous years taxes. That one still annoys me!! The way we do it though is my ex claims the oldest child and I claim the youngest one. That was how our accountant told us to do it! It cost me a pretty penny for the accountant to sort it all out, keep in touch with the gov reps etc. I was too stressed at the time to do it myself with the divorce and all.
Ok, well all I can say is, it is over and and done and I will never not file anything ever again. I wish I had better sense before of what needed to be done. But my ex said he would take care of that side of the business. I trusted him. I have learned soooo much in the last 3 years. I hope I don't get audited again. But at least I keep records well enough that I provide what they need.
"There was another great article on Good Morning America (ABC) this morning about women going a group vowing not to purchase any clothing for one year, with the exception of underwear, scarfs, etc.
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Norma
"Patience is the best remedy for every trouble"- Plautus
I saw this earlier today.
Good info.
Avoid an Audit: 6 'Red Flags' You Should Know
http://finance.yahoo.com/taxes/article/108757/avoid-an-audit-6-red-flags-you-should-Know?mod=taxes-advice_strategy
This news hound reads everything, LOL!
Norma
"Patience is the best remedy for every trouble"- Plautus
I haven't been audited, but my clients have. The best is when a new client retains you simply because they are being audited and suddenly their previous accountant is "unavailable". I remember sub-contracting to my mom's firm, and my 1st experience with a business audit was this guy that had 4 companies & was being audited for all 4, for the 3 prior years...and NONE of his stuff was in order...uggg...
Audits...good for my bank account but what a PITA! Usually (at least here in Canada) you end up with some jerk on a power trip.
I learned early on in the business from my mother, that a good accountant or bookkeeper will tell you that their job is to "audit-proof" you. As long as you've disclosed everything, you have nothing to worry about.
LOL @ that article - trying to write off a bedroom set as office furniture. Unbelievable what people try to claim!
~ Mom to 5 ~
I've been mini-audited once. They just asked for proof that I paid my rent. I found out after that 3 of my 5 roommates got the same audit, so likely they were looking at the landlords rather then the students (6 of us living in the same house).
I have
Bex -
Norma
Thanks, I knew it was something about highlighting or copying and pasting, but I didn't realize it was that easy.
Norma
"Patience is the best remedy for every trouble"- Plautus
Oh my this brings back painful memories!
Yes I have been audited personally and for my business. Both recently after my divorce. I don't blame the government though. What a mess.
My business: Not only did my ex not complete all the accounting work he said he did(like all my liquor bills for a year and a half, I guess he put it off because it comes right out of my account and you don't have to write a cheq to pay it) he didn't file the taxes. I suppose he didn't file them because there was so much work that wasn't done to submit it to an accountant. After I completed all the work(many hours/nights at home by myself after the divorce) and we filed the taxes. I found out we owed back taxes, penalties, and interest. That was the major part of my $30,000 debt. It included personal taxes from us selling a house we did as an investment that had no tax paid on it. Which reminds me. What the hell was he doing the whole time at home he said he was working??!! FYI I now have everything completed, filed, and up to date. I rock! So yes, we got audited. Our business had my store and his consulting business combined into one. I had to provide receipts and a whole bunch of things. I had my accountant do it. It actually turns out, we got $400 back(this was gst audit). It was incredibly stressful.
The next year, after our divorce, we got audited personally. Because of the way we sold our investment property and spit the kid deductions up they were very curious. I don't know why as I had just paid them $6000 personally the year before for all the tax I owed. OH and get this. We had to provide passports and birth certificates for our kids. They knew about my oldest DS but not the youngest one, I had to prove he existed. He was 8 at the time and we had put him on previous years taxes. That one still annoys me!! The way we do it though is my ex claims the oldest child and I claim the youngest one. That was how our accountant told us to do it! It cost me a pretty penny for the accountant to sort it all out, keep in touch with the gov reps etc. I was too stressed at the time to do it myself with the divorce and all.
Ok, well all I can say is, it is over and and done and I will never not file anything ever again. I wish I had better sense before of what needed to be done. But my ex said he would take care of that side of the business. I trusted him. I have learned soooo much in the last 3 years. I hope I don't get audited again. But at least I keep records well enough that I provide what they need.
Wow, bad memories. Movin on!
"There was another great article on Good Morning America (ABC) this morning about women going a group vowing not to purchase any clothing for one year, with the exception of underwear, scarfs, etc.
Here it is:
Norma
"Patience is the best remedy for every trouble"- Plautus
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