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Old 02-23-2010, 09:19 AM
John from OH John from OH is offline
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Join Date: Mar 2000
Location: Northern Ohio
Posts: 144
I've been through several of these over the past 25 years. First off, they are random audits and nothing to fear. I assume you use a CPA to do your taxes, if not, you probably should. It will be some of the best money you spend. Have your CPA request a change of venue for the audit and have the audit at your CPA's office. This is more or less neutral territory and far less intimidating for you. Also, it will keep the auditor from going beyond what they are supposed to review and asking questions that push the envelope. Next, your CPA will tell you which records you need to bring for your specific situation. It helps to bring copies for the auditor as well. You should supply a copy of all the records to your CPA ahead of time so they can review them. You CPA should give you brief guidelines on how and what to answer. Be honest with the auditor. The good news, every audit I have been through has come out well. The auditors have always been polite and have suggested things to do to save me money. Best of luck and if you have any quesitons, pm me and I'll answer the best I can.
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Old 02-25-2010, 05:56 PM
Jenyss Jenyss is offline
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Join Date: Aug 2006
Location: Cleveland, Ohio
Posts: 22
Hi GUys,

Thank you all for the posts! I have been reading them all week. I contacted our tax accountant and am signing it over to him. He said that because we use Paychex ( a payroll company ) we have nothing to worry about. We will meet on their office, but they still have to do an office check the week before. I will post with results.
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Old 02-25-2010, 06:19 PM
Daily Lawn/Landscape Daily Lawn/Landscape is offline
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Join Date: Feb 2006
Location: 6 Evansville, IN
Posts: 694
An office check?
Invite them into the cab of your truck, not into your house. Unless they have a warrant, do not let them into your house. (period) It will turn into a fishing expedition

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Old 05-18-2012, 01:18 PM
rockerchris rockerchris is offline
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Join Date: Jun 2010
Location: Toronto, Ontario
Posts: 23
My dad is a CMA (CPA equivalent in Canada). Anyways, he was telling about a sales tax audit they received while he was working at a Warehousing company.
What they did was set up a desk at the end of the warehouse, which in February was below zero. You can guess how long that guy was there. No need to make them comfortable.
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Old 05-18-2012, 06:03 PM
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wbw wbw is offline
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Join Date: Oct 2004
Location: houston tx
Posts: 4,836
Yep. That's what you want to do...piss them off.
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Old 05-18-2012, 06:44 PM
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tonygreek tonygreek is offline
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Join Date: Aug 2004
Location: Lancaster, PA
Posts: 3,171
Originally Posted by Daily Lawn/Landscape View Post
Unless they have a warrant, do not let them into your house. (period)
Because they want to verify unemployment compensation tax compliance? That's the role ODJFS plays in this scenario.

You can have the appointment at their office, you just have to bring all of the records with you.

edit: If you haven't already, check out their web site. Of note:
I know lawn & landscape marketing, branding, and web strategy. I'm not anonymous, I just don't self-promote.
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Old 05-18-2012, 08:19 PM
Weekend cut easymoney Weekend cut easymoney is online now
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Join Date: Mar 2010
Location: Texas-The Hilly part
Posts: 3,847
Originally Posted by nepatsfan View Post
forget about all the stuff they say you need. When they ask for a petty cash journel hand them an envelope filled with cash. Tell them that is their copy to keep. They will see that everything is in perfect order when they report back to the office.
and then expense it on your irs shortform as : lubricant
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Old 05-18-2012, 09:03 PM
XYZLawnPros XYZLawnPros is offline
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Join Date: Sep 2009
Location: Tundraland
Posts: 384
Absolutely correct on the part about they have zero(paper) rights to
enter your premises without your permission. Be cordial and upfront
about it or have your accountant/lawyer tell them what is up.
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Old 05-18-2012, 09:11 PM
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Patriot Services Patriot Services is online now
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Join Date: Jul 2006
Location: Tampa FL
Posts: 10,470
As with any audit you can provide them with the requested information or they will go with the usual and customary amounts. I promise those numbers they use will not be to your favor. They are not new to this and already know more about your business than you think.
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