OHIO
Hi, am am a sole proprietor, freelance performer in the media industry. I received audit
notification for '04 and '05 returns. For several years I have basically filled in an Organizer
my CPA has given me and he's taken that as the basis for filling out of my Schedule C.
Audit IDR is focused on Advertising, Cost of Goods, Travel/Entertainment deduction amts.
and all "Other Expenses."
In reviewing my preparation of the Organizers for these years I've found major miscalculation errors and some apparent duplication of figures between several categories. I am worried about the consequences of the amount of discrepancies that clearly exist upon reviewing
my info, mainly because there is a good deal that I simply can't substantiate for lack of records and otherwise the errors are due to my poor preparation of the information where i failed to double check and erroneously figured amounts into more than one category.
As an example, under COGS, I misunderstood and entered a number of the "Other Expenses" items into one of the line items here, and in effect, an amount totaling around 10K is likely inaccurate.
I want to just make this right, acknowledge my mistakes and pay for whatever is due but am extremely anxious about how the auditors tend to treat such oversights ...mainly, I want to emphasize, there was not any deliberate intent but rather a good deal of stupidity and carelessness in my submittal of these Organizers without being more responsible. I readily admit that I am a lousy bookkeeper and the nature of my business in the last few years has been such that I have been very ill organized and bad with my record keeping; i know that many actual receipts for what is claimed simply aren't anywhere to be found.
My CPA has Power of Atty and will represent at the Audit at the end of May. I have not yet discussed the inaccuracies I've found with him in depth...given that its Tax Season so it's fortunately been moved up to May. In retrospect i'm sorry he didn't question some of the amounts in question. Nevertheless, any advice on what to expect and how to present things would be most welcomed and appreciated.
Thanks
Mark
Hi, am am a sole proprietor, freelance performer in the media industry. I received audit
notification for '04 and '05 returns. For several years I have basically filled in an Organizer
my CPA has given me and he's taken that as the basis for filling out of my Schedule C.
Audit IDR is focused on Advertising, Cost of Goods, Travel/Entertainment deduction amts.
and all "Other Expenses."
In reviewing my preparation of the Organizers for these years I've found major miscalculation errors and some apparent duplication of figures between several categories. I am worried about the consequences of the amount of discrepancies that clearly exist upon reviewing
my info, mainly because there is a good deal that I simply can't substantiate for lack of records and otherwise the errors are due to my poor preparation of the information where i failed to double check and erroneously figured amounts into more than one category.
As an example, under COGS, I misunderstood and entered a number of the "Other Expenses" items into one of the line items here, and in effect, an amount totaling around 10K is likely inaccurate.
I want to just make this right, acknowledge my mistakes and pay for whatever is due but am extremely anxious about how the auditors tend to treat such oversights ...mainly, I want to emphasize, there was not any deliberate intent but rather a good deal of stupidity and carelessness in my submittal of these Organizers without being more responsible. I readily admit that I am a lousy bookkeeper and the nature of my business in the last few years has been such that I have been very ill organized and bad with my record keeping; i know that many actual receipts for what is claimed simply aren't anywhere to be found.
My CPA has Power of Atty and will represent at the Audit at the end of May. I have not yet discussed the inaccuracies I've found with him in depth...given that its Tax Season so it's fortunately been moved up to May. In retrospect i'm sorry he didn't question some of the amounts in question. Nevertheless, any advice on what to expect and how to present things would be most welcomed and appreciated.
Thanks
Mark
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