Being Audited from IRS

Precious08

Seasoned Expediter
I received a letter in mail by the IRS saying that they are examining/auditing my 2004 taxes for employee business expenses. I was a team truck driver with husband 2000-2005. We filed in 2005,I had a nervous breakdown on the road and I separated from him in April 05 & filed for divorce.Divorced in Dec.05. Since he didnt want nothing to do with the taxes, I filed married/separately and sent them in after 4-15-05. I ended up owing the IRS plus with late penalties. He hasnt done his 04,05,06,07 taxes & still driving for the trucking company. We did not own our own truck. I dont have any of my logs or receipts for meals ect. which the IRS wants copies of. I called the trucking company to get copies of my 2004 logs but they told me they only keep logs up to 6 months. I thought they have to keep those for 7 yrs or so ?? I am on SSDI as of Aug.06 and still am on it. I live in low income housing, have a 1996 tracker with high mileage. Can the IRS take my SSDI check each month ? Or what will they do to me ?? :confused:
 

davekc

Senior Moderator
Staff member
Fleet Owner
I would really advise having some legal council in this situation.
I personally wouldn't know the process in your case, but I would start with SS and see what help they can give you.
If that doesn't work, call the Bar Association in your state for representation and guidance.
You don't list your state that you reside, so you can do a google search on free lagal aid for your state and see what comes up.
Good luck.
 
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greg334

Veteran Expediter
Ok serious advice.

There is a few free or almost free places to get legal aid for those in your situation, I would actually start there. I would not go into an audit without an Enrolled Agent or a CPA or a tax lawyer.

Don't take any advice without talking to someone who is prepared to help you.

Do not listen to a tax preparer who can not represent you, most can't but the Enrolled Agent, a CPA and a tax lawyer can.

One last thing is who actually prepared your taxes? If someone did your taxes also contact them.
 

RLENT

Veteran Expediter
Good advice so far - but also scope out:

Publications by Dan Pilla

He has written a number of self-help books on how to deal with the IRS - particularly with overzealous or out-of-control agents.

He fully explains how the system works (Did you know an auditor's determination is not binding ? ..... unless you sign off and agree to it - something they will often try to get you to do through intimidation and your ignorance)

Here's what the Associated Press had to say about him:

"Pilla probably knows more about the IRS than the Commissioner"

PR blurb from his website:

Dan's work has been recognized by the likes of CNN, CNBC and the USA Radio Network. His books have been recommended by leading magazines and financial journals such as Money Magazine, Family Circle, Wall Street Journal, Investors Business Daily and many others. Dan has contributed to major articles for Reader's Digest, National Review and Reason magazine. Recently, he wrote a special report for the prestigious Cato Institute entitled, "Why You Can't Trust the IRS." This policy analysis has been discussed in newspapers across the nation. Additionally, Dan is an official tax consultant to the US Taxpayer's Party, the National Taxpayer's Union and many other taxpayer's groups.

He's good guy - check him out.
 

RLENT

Veteran Expediter
On the missing records - if you can't get access to the actual records you may have to reconstruct them as best you can.

One other to know - if you prepare an affidavit (sworn under the penalty of perjury) for such items, the IRS agent auditing you is legally bound to accept them as though they were the originals. ;)
 

Fkatz

Veteran Expediter
Charter Member
I received a letter in mail by the IRS saying that they are examining/auditing my 2004 taxes for employee business expenses. I was a team truck driver with husband 2000-2005. We filed in 2005,I had a nervous breakdown on the road and I separated from him in April 05 & filed for divorce.Divorced in Dec.05. Since he didnt want nothing to do with the taxes, I filed married/separately and sent them in after 4-15-05. I ended up owing the IRS plus with late penalties. He hasnt done his 04,05,06,07 taxes & still driving for the trucking company. We did not own our own truck. I dont have any of my logs or receipts for meals ect. which the IRS wants copies of. I called the trucking company to get copies of my 2004 logs but they told me they only keep logs up to 6 months. I thought they have to keep those for 7 yrs or so ?? I am on SSDI as of Aug.06 and still am on it. I live in low income housing, have a 1996 tracker with high mileage. Can the IRS take my SSDI check each month ? Or what will they do to me ??

I just got off the phone with the NCDOt Motor Carrier Division, and according to federal law the trucking companies only have to keep the drivers logs for a period of 5 months. which is exactly what you were told.

What you would have to do is reconstruct the log books by purchasing blanks and filling in the lines at the best of your ability otherwise they will probably disallow the deduction.
As far as the other items that you claimed on your tax return, they will also be disallowed and you would owe the tax for that also. Thay are allowed to go back up to 3 year}s that the tax return filed is due, of which this return was due by April 15, 2005 and you will have to pay all the taxes owed that they calculate.

But when it comes to your situation, do not be afraid of speaking with them, DO NOT IGNORE IT. If that is what the senario is, then that is what it will be.
Explain the situation that your in and it will probably be graded as Uncollectable due to your current status. and THEY CAN IF YOU DO NOT TALK TO THEM OR GO DOWN TO YOUR LOCAL OFFICE, take a protion of your income. If it is state funded, then the goverment cannot attach it, if is is Social Security Disibility Income, I do not think they would attache it. but there are no guarantees. GET AHOLD OF A ENROLLED AGENT, OR CPA WHO WILL NOT RIP YOU OFF IN $$$$. Find out what they would charge, and explain it to them. and see what they say, normally the first visit is Free.

As far as your X is concerned you can send in a Referral Information Form It is Federal form 3949-A and you can download it from the IRS Web Site at Internal Revenue Service. Fill it out and where the little boxes are in the middle of the form, put an X wher it states :
Unreported income
Failure to file a tax return
Failure to Pay taxes.

He should of recieved 1099-Misc's from the trucking co. and they have them on file,

What would happen is this, If you know your X's SSN you enter it on the form, then they will check the 1099 records, and see if there are any, I they find them on file they inreturn will make up tax return for the years he has not filed and he will owe any tax that is due plus penalty and interest added without deduction. that way he will have to file returns for those years. if he wants but if he does not choose to file then they will eventually go after any assets the he has to collect the tax owed, like putting a judgement on his settlements. to pay the taxes owed.

If you have any other question please do not hesitate to ask,

Franklin Katz, ATP, PA
Frank's Tax & Business Service
120 York Rd
Kings Mountain, NC 28086
704-739-4039


Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.

you can sign the form and recieve a reward for the information and a percentage of the tax owed
 

Crazynuff

Veteran Expediter
If I read this correctly he has still not filed his taxes for that year . Did you itemize deductions ? There may be cause for concern there . When marrying filing seperately both spouses must file the same way . Either they both itemize or both take the standard deduction . If you itemized and he takes the standard deduction your deductions will be disallowed . One solution - filed an amended form . If possible persuade him to agree to a joint return , possible if filing jointly would give him a better return . As already mentioned , you need professional advice .
 

Fkatz

Veteran Expediter
Charter Member
Do not file an amended return, if you do you will be responsible for his tax bill, you are the one that filed and he would have to file the same way you did. not the opposite,

I myself cannot help you in this situation, I am only a Accredted Tax Preparer, and Practing Accountant, I have friends who are CPA' and EA's That can help you and I can explain to them the trucking industry.

Please if you want call me at 704-739-4039 to discuss the problem.

Franklin Katz, ATP, PA
Frank's Tax & Business Service
120 York Rd
Kings Mountain< NC 28086
 

dcalien

Seasoned Expediter
I am only posting here so I do not lose this thread. I know I am stupid haha it is the only way I know to do it.:eek:
 

Crazynuff

Veteran Expediter
Do not file an amended return, if you do you will be responsible for his tax bill, you are the one that filed and he would have to file the same way you did. not the opposite,

I myself cannot help you in this situation, I am only a Accredted Tax Preparer, and Practing Accountant, I have friends who are CPA' and EA's That can help you and I can explain to them the trucking industry.

Please if you want call me at 704-739-4039 to discuss the problem.

Franklin Katz, ATP, PA
Frank's Tax & Business Service
120 York Rd
Kings Mountain< NC 28086

I have to disagree here . If she itemized how can you say he would HAVE to itemize ? If he didn't keep records he'd take the standard deduction . I know this because I was separated from my wife in '91 but still married . I had the mortgage , kids , property taxes , and all deductions . I itemized , she filed standard . I got my refund then 2 years later IRS came along and disallowed my deductions . I ended up paying them $5,000 . If I approached my ex and offered her $1,000 to file an amended joint itemized return she probably would have agreed (she had to pay in $300 filing married separate that year ) and I could have kept the deductions . But I had an attitude and would rather give the IRS money than her . Reading the original post I am confused . Is the audit for 04 taxes in regard to the taxes file in April '05 where IRS was owed money ?
 

Fkatz

Veteran Expediter
Charter Member
cRAZYNUFF,

IF YOU FILE A AMENDED RETURN, WITH HER EX, THEN SHE IS REPONSIBLE FOR THE TAXES HE OWES,

ONCE A PERSON FILES SEPARATELY.THAT PERSON IS NOT RESPONSIBLE FOR ANYTHING HER EX DOES. ESPECIALLY FOR TAXES OWED.

FRANK
 
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