What are the chances I'll get audited by IRS?
I own a very small restaurant, about 300 sqrfeet, It was opened in 2004.
I filed in 2004, but I still owe returns for 2005-2007. I will file these returns by October 15.
For these 3 years, I'll be paying $6,000 in taxes.
The problem is that I didn't organize my expenses and revenues very well and I didn't keep great book keeping. On these returns, I've had to do a lot of estimation, but the numbers are generally accurate
The numbers on the returns are not out of line, the deductions are reasonable and the COGS are 40% of total gross income.
Will I be an audit target because of these late returns? If I do get audited, what's the best way to avoid being hit with a big fine?
Thank You
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