bkmk
There is a lot more to preparing for an audit than saving receipts. In fact, that is the last thing on my mind when preparing a client for response or audit. In very short terms, how do I convince someone who does not know what they are doing that the return is correct.
Then there is the not-mentioned “5th audit” type; the politically motivated full cavity search of ones political enemies. This audit is not intended to actually find malfeasance, but is a weapon of intimidation designed to silence opposition to the regime.
Are you sure, there are not 5 types of audits?
The TCMP (Taxpayer Compliance Measurement Program) is, or perhaps was, another type of very intrusive audit.
The mother of all audits is an audit conducted on a corporation or an individual because of their political position.
#1 happened to me a few years ago, the IRS claimed that I didn’t send in a form that I know I sent in. This was for my 2009 taxes that they were just then reviewing. Supposedly the transcript was missing this form and I was told I owed about 3500 bucks. I managed to convince them (by re-sending in the completed form) that I didn’t owe them anything, but I was a nervous wreck until the process was over (about 3 months of waiting).
As I think back on it, I wonder if there was some political motivation to it...
IR Manual MT 9900-26, 1-29-75 as follows:
242.12 Books and Records of An Individual
(1) An individual taxpayer may refuse to exhibit his books and records for examination on the ground that compelling him to do so might violate his right against self-incrimination under the Fifth Amendment and constitute an illegal search and seizure under the Fourth Amendment. However, in the absence of such claims, it is not error for a court to charge the jury that it may consider the refusal to produce books and records, in determining willfulness.
(2) The privilege against self-incrimination does not permit a taxpayer to refuse to obey a summons issued under IRC 7602 or a court order directing his appearance. He is required to appear and cannot use the Fifth Amendment as an excuse for failure to do so, although he may exercise it in connection with specific questions. He cannot refuse to bring his records, but may decline to submit them for inspection on Constitutional grounds. In the Vader case [U.S. v. Vader, 119 F.Supp. 330], the Government moved to hold a taxpayer in contempt of court for refusal to obey a court order to produce his books and records. He refused to submit them for inspection by the Government, basing his refusal on the Fifth Amendment. The court denied the motion to hold him in contempt, holding that disclosure of his assets would provide a starting point for a tax evasion case.
Note, in particular, where this IR Manual uses the phrase “in the absence of such claims”. In general if you do not assert your rights, explicitly and in a timely fashion, then you can be presumed to have waived them.
I don’t know how far I could get with this plan, however, it would be interesting to try it...
If I were being audited I might try to:
Tell them I have done nothing wrong and plead the 5th.
Refuse to comply in any audit activity and tell them that the audit is politically motivated since I am a conservative.
Tell them they have no controlling legal authority over me.
Force them to provide a search warrant as they are violating my 4th Amendment rights to be secure in my person, place etc.
In other words IRS, go jump yourselves.
Targeted This is politically motivated and directed by members of the obummer administration against anyone who disagrees with them. This audit is usually conducted in conjunction with a media blitz that involves accusations of racism.
This is the type of audit I will get after thiis posting.
If you are directed to an office audit, what are the distance limitations?
I would be surprised if there was an IRS office withing 300 miles of me.