IRS Visits Your Office in Atlanta: What to Expect

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Education & Training with Massey and Company CPA

 

If your business is being audited, the IRS is going to visit your office.  The auditor will be looking for anything strange, out of place or inconsistent with what is reported on your tax return.  These are known as "red flags."  Example of red flags include:

  • the owner's luxury car or boat is parked at the office
  • inventory in the warehouse that does not reconcile with what is on the tax returnsworkers in the office, warehouse or factory who should have been classified as employees, with payroll taxes withheld and paid to the government
  • missing furniture, computers, equipment and machinery that were deducted on the tax return
  • business activity that is out of proportion to what was reported on the returns

 

If you operate your business out of a home office, expect the IRS auditor to visit your house or apartment.  The auditor will verify the physical dimensions of your office, to make sure they agree with what you reported on your tax return.  And the auditor will have eyes wide open for evidence that the office meets the IRS requirements for a deductible home office.  There requirements include:

 

  • The office is used exclusively and regularly for business purposes (it cannot be at your kitchen or dining room table)
  • The office is used as a principal place of business, for managerial or administrative work, to meet with clients or customers, or to store inventory or samples  

 

Let's conclude with a word to the wise:  treat your office like you are always under audit.  Always be prepared for a visitor from IRS.

     ________________________________


 If you have any questions about IRS audits, installment agreements, offers in compromise, catching up on back taxes, QuickBooks, or other tax and accounting issues, feel free to contact us at 678-235-5460.

 

You may also contact us by email at gary.massey@masseyandcompanyCPA.com, or on our website. 

 

Our offices are in the Buckhead neighborhood of Atlanta and we welcome face to face visits.

 

Please check out what our clients say on our Testimonials page.  We love our clients and their feedback makes us proud!

 

 

Gary Massey, CPA

Massey and Company CPA

3 Alliance Center, 3550 Lenox Road NE, Suite 2100, Atlanta, GA 30326

www.masseyandcompanyCPA.com

 

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Rainer
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Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Gary,

That is why it is good to play by the rules. That way, they can come on by any time they want to. Preferably with a little notice, so you do not need to cancel other appointments last minute.

Nov 12, 2018 08:54 PM #1
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Gary, it's so important to have a great tax advisor!  I have one I really love who used to be an IRS agent.  She keeps me in line when it comes to record keeping and getting my act together in time to file on time!

Nov 12, 2018 09:11 PM #2
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Gary Massey, CPA

Atlanta's Small Business CPA
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