bpolunin[at]hotmail.com wrote:

- quote -

Do you mean $100,000 in extra bank deposits? If so, not
taxable if indeed "personal" (i.e, gifts, xfers from other
accounts, or reported elsewhere on return, like W-2), but
you'll need to provide proof of that. If you don't have
deposit detail, your bank can furnish it to you (for a fee).

- quote -

Yes.

Fred F.

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<bpolunin[at]hotmail.com> wrote:

- quote -

Yes, they can.

An excellent rule to live by is "Never represent yourself at
an audit. Send a CPA, an Enrolled Agent, or a tax attorney
to represent you and do not go to the audit yourself unless
the IRS demands you presence in writing."

20 plus years ago I had a dentist who was very disgruntled
because she had just gotten a notce she was being audited
again and was not unhappy aboout the disruption audits
caused in her office.

I suggested she hire a CPA who could represent at the IRS
office. She did that and was so relieved she put a $500
credit in my account!

Dick

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bpolu...[at]hotmail.com wrote:

- quote -

Yes, they can do that. You are in way over your head and
need to get professional help. Please explain how using the
account for personal use explain an additional $100,000 in
additional deposits? That is the first question that she
will ask.

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<bpolunin[at]hotmail.com> wrote:

- quote -

You should probably engage a CPA to represent you at this
point.

Each audit situation is different & needs to be evaluated
accrodingly as to how to respond at this point.

There is no boilerplate answer.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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I have a question for you in regards to my tax audit. I have
a small business and I am a sole proprietor. I recently went
in for my appointment with the auditor and it seemed all
went OK until she looked at my bank statements. She said
that I have about $100,000 unaccounted for in my receipts. I
was surprised to hear that since I record every receipt.
When I went home, I started looking farther into it, and
figured out that I also used this account for personal use.
I told her that I used this account for business only, buy
after looking at the checks and the statements, I figured
out that was the year when I was going to close my business
and started also using the account for personal needs.

Can I tell the auditor now that I also used the account for
personal use and not just for business? I have another
appointment with her in 3 weeks.

Also, she asked me to bring details to my deductions that
were not on the original agenda.

On the original agenda she asked to bring supporting
documents for Cost of Goods, Receipts, and Car expenses.

Now, after the first appointment, she says she wants to also
look at Travel Expenses, Meal expenses, and the Office
Supplies expenses on the next appointment.

Can they do that?

Thanks for your help in advance.

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