Posted by Anonymous on 12/13/05 5:03pm
Msg #82272

IRS

I am being audited by the IRS for 2004. They have completed disallowed all of my notary expenses stating they were personal in nature. They stated I have nothing from my employer showing my services were for business. Has anyone ever heard of this before or experienced it?

Reply by Tina_MA on 12/13/05 5:06pm
Msg #82273

If I were you I would engage the services of an attorney who *specializes* in tax law immediately.

Reply by Anonymous on 12/13/05 5:22pm
Msg #82275

Paper, toner, gas and supplies are personal???

Reply by SLP_VA on 12/13/05 5:30pm
Msg #82276

Is being a SA full time for you or do you have another job and do this part time? If part time and you have a full time job, maybe the IRS is thinking you are claiming all of that for your full time job.

Just a thought.

Reply by Genkichan on 12/13/05 5:32pm
Msg #82277

Did you actually file a schedule C for business last year? That's the proper form on which to take business deductions. If you didn't do a schedule C, you're tough out of luck in many ways, and better get busy filing an amendment. And, as someone else already stated, higher an attorney familiar with tax laws. Do that quick before the IRS makes a formal ruling in your case that will take extra effort to overturn.

Reply by JM_NY on 12/13/05 6:31pm
Msg #82282

Don't hire an attorney. Hire an Enrolled Agent that knows what they are doing to handle your tax audit. As long as you have the paper work to substantiate your expenses don't fret the audit. I do hope you filed that schedule C for your income and expenses and didn't put it on your schedule A.

Reply by Anonymous on 12/13/05 8:04pm
Msg #82291

Sounds to me like you did not do your taxes right. Maybe you should let a professional do it next time.

Reply by Beth/MD on 12/14/05 7:18am
Msg #82348

What you're saying doesn't seem to make much sense. I've never had an issue with work related deductions. Matter of fact, I've called the IRS to verify some in the past before I listed them. It sounds like you may have used a wrong form or something. Get professional help.

Reply by JD_inMD on 12/14/05 8:38am
Msg #82369

IRS defines business expenses as necessary and ordinary for your line of work. A ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. As long as you can prove the expense was necessary and ordinary you should have no problem (as long as you can prove you paid for the expense also).

Reply by Anonymous on 12/14/05 10:33am
Msg #82432

Thanks for all of the feedback. My taxes were prepared professionally and a schedule C was filed. Maybe the IRS did think my part time notary work was related to my full time job. I've filed an appeal to meet with them but I will consult with a professional before the meeting. Thanks again and have a wonderful day/evening.