Question:

What are my chances of being Audited by the IRS?? I'm really worried?

by Guest63859  |  earlier

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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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2 ANSWERS


  1. Your chances are about the same as they were when you asked this question a few hours ago.


  2. approximately businesses get audited every 7 years. So for the next 4 years i would keep extremely accurate records that way if you are audited they will be able to see that although you were sloppy to begin with you have lifted your game and you shouldnt get too harsh a penalty if one at all

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