cpayne5
04-18-2006, 09:25 AM
A relative of mine owns a motorcycle dealership. They started it about 6 years ago and after the third year they got audited. The auditor told them that they hadn't been doing their taxes correctly and they had to pay some fines. They then changed their operating procedures to adhere to what the auditor told them. This past year, they got audited again. This new auditor said that the previous auditor was wrong and that their new procedures were wrong. They ended up having to pay a $60k fine this go around.
jbcjr14
04-18-2006, 09:28 AM
They should still have some major recourse on the prior auditor and should contest that they were told to handle their stuff the way they handled it. I would bet they can contest that issue with an appeal and win if its documented well.
TheMalcolmConnection
04-18-2006, 09:30 AM
A relative of mine owns a motorcycle dealership. They started it about 6 years ago and after the third year they got audited. The auditor told them that they hadn't been doing their taxes correctly and they had to pay some fines. They then changed their operating procedures to adhere to what the auditor told them. This past year, they got audited again. This new auditor said that the previous auditor was wrong and that their new procedures were wrong. They ended up having to pay a $60k fine this go around.
Yeah, I mean just like with ANY legitimate business, if you mess up, that's not your fault. That should have been the IRS's bad.