Getting audited - tanTALK

Taning4you · 11-28-2003, 02:39 PM

Has anyone ever had their tax returns audited? If so, what do they look for. Our accountant said in our state they do not take actual receipts but an average of what a salon should be making and it's up to you to prove them wrong. Anybody ever hear of such a thing?

NewTanners · 11-29-2003, 09:15 AM

Never been audited, but have 3 cash bussineses that we run by the book because of the fear of an audit.

I have heard that SOME cash industries are targeted based on sales: Pizza shops Hair salons tanning etc. A friend of mine that is in the pizza bussines was told by one of his distributers that they can come up with an average figure a pizza shop makes based on the amount of sauce they purchase. How much of this is true i don't know. I find it hard to believe that the the IRS has enough people and resources to actually target a bussines based on this alone. I can see that if you or your accountant messed up somewhere and it raised a flag that warrants an audit they may have a formula based on the amount of sauce they sold (or how many beds you have). Then it would be up to you to prove them wrong.

electrictanman · 11-29-2003, 08:12 PM

You are correct on what you accountant told you, mine told me the same. They do an average balance, my accountant does this for me every year. However as he hold me be sure to keep every receipt in the event there is an audit. I myself had a fear of being audited also, I am very kean on keeping everything tracked.

Club Rayz International · 12-02-2003, 10:03 PM

I have the best accountant in West Virginia! Well, if you mean by owning a 32-bed Salon and Full Distributorship of European Tanning Beds (hint: they lost the last 'world war') being handed the Entire Upper East Coast and ONLY "claiming" $112,000 (stop laughing) I guess I wood be screwed, I mean it isn't like the IRS can track how much Coors Light I drink, OR how many times a DAY my wife gets her nails done (like they did that poor shlamoley in the pizza joint), cause if they did, they would know my income would well exceed $300K, and for that, I would poopoo my pants (like anyone would notice) but before I had my "crack accountant" I had Joe Krystaforkski...anyone seen him? short smelly new yawker, 20-inch inseam, should've pulled out..you know the drill; Maybe he's with Kenny...anyway he taught me to never use my credit card at the liquor store on york road that the koreans own, ****, they can't drive, so they might as well sell liquor..right? Anyway, why would the IRS discriminate on fat guys that own two hot tubs? It isn't like I play put-put...wait, I do...scratch that. I would shove my $400 driver that I can't hit past the ladies tee's in my stocking, but it is chocked full of slim-jim's. I gotta run, Pam has something for me to do. Bill, log me out of act in an our.

_________________
[ This Message was edited by: Club Rayz International on 2003-12-02 22:22 ]

11-28-2003, 02:39 PM	#1 (permalink)
Taning4you Join Date: Jun 3 2002 Posts: 51 Rep Power: 0	Has anyone ever had their tax returns audited? If so, what do they look for. Our accountant said in our state they do not take actual receipts but an average of what a salon should be making and it's up to you to prove them wrong. Anybody ever hear of such a thing?

11-29-2003, 09:15 AM	#2 (permalink)
NewTanners Join Date: Sep 3 2002 Posts: 30 Rep Power: 0	Never been audited, but have 3 cash bussineses that we run by the book because of the fear of an audit. I have heard that SOME cash industries are targeted based on sales: Pizza shops Hair salons tanning etc. A friend of mine that is in the pizza bussines was told by one of his distributers that they can come up with an average figure a pizza shop makes based on the amount of sauce they purchase. How much of this is true i don't know. I find it hard to believe that the the IRS has enough people and resources to actually target a bussines based on this alone. I can see that if you or your accountant messed up somewhere and it raised a flag that warrants an audit they may have a formula based on the amount of sauce they sold (or how many beds you have). Then it would be up to you to prove them wrong.

11-29-2003, 08:12 PM	#3 (permalink)
electrictanman Join Date: Apr 11 2003 Location: Louisiana Posts: 165 Rep Power: 22	You are correct on what you accountant told you, mine told me the same. They do an average balance, my accountant does this for me every year. However as he hold me be sure to keep every receipt in the event there is an audit. I myself had a fear of being audited also, I am very kean on keeping everything tracked.

12-02-2003, 10:03 PM	#4 (permalink)
Club Rayz International Join Date: Nov 13 2003 Posts: 37 Rep Power: 0	I have the best accountant in West Virginia! Well, if you mean by owning a 32-bed Salon and Full Distributorship of European Tanning Beds (hint: they lost the last 'world war') being handed the Entire Upper East Coast and ONLY "claiming" $112,000 (stop laughing) I guess I wood be screwed, I mean it isn't like the IRS can track how much Coors Light I drink, OR how many times a DAY my wife gets her nails done (like they did that poor shlamoley in the pizza joint), cause if they did, they would know my income would well exceed $300K, and for that, I would poopoo my pants (like anyone would notice) but before I had my "crack accountant" I had Joe Krystaforkski...anyone seen him? short smelly new yawker, 20-inch inseam, should've pulled out..you know the drill; Maybe he's with Kenny...anyway he taught me to never use my credit card at the liquor store on york road that the koreans own, ****, they can't drive, so they might as well sell liquor..right? Anyway, why would the IRS discriminate on fat guys that own two hot tubs? It isn't like I play put-put...wait, I do...scratch that. I would shove my $400 driver that I can't hit past the ladies tee's in my stocking, but it is chocked full of slim-jim's. I gotta run, Pam has something for me to do. Bill, log me out of act in an our. _________________ [ This Message was edited by: Club Rayz International on 2003-12-02 22:22 ]

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