# New IRS flow chart



## Bossroo (Aug 27, 2014)

A new IRS flow chart ( this is a short condenced version as it contains much more proceedureal and paper trail evidence ) for tax payer audits will go into effect starting on Sept. 2, 2014. This is due to a Federal Tax Court ruling that was originally filed by an unhappy tax payer with his tax bill.  He lost.  Many tax payers drag out the audit time by NOT supplying the IRS auditor with a complete PAPER TRAIL ( spread sheets or own computer accounting are NOT enough, one needs PAPER TRAIL  receipts of proof for purchases or sales,and proof of payment as well as expense reembur sement policy statement from their employer ) to support their claimed deductions and/ or their income and/ or sale of goods or property and then dragging their feet some more  to provide the paper evidence information to gain more time.  Therefore, the new flow chart will have the tax payer a much shorter time frame ( as in days to a couple weeks ONLY) to come up with the paper trail or accept the tax assessment due to lack of proof. The audits will be more specific in nature, with strict guidelines to follow in a shorter allowed time frame.  So it will behoove the tax payer to use a reputable and very knowledgable in your field of work and/ or farm enterprise CPA or tax prepareor.  Good Luck !


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## alsea1 (Aug 27, 2014)

God forbid us pee on's be short on what we owe.  All the govment peeps want raises.


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## Southern by choice (Aug 28, 2014)

Thanks Bossroo! 

For those in NC in the Piedmont region there is a tax class farmers can take. I might post in another link.

I know you warn many people about audits and IRS issues, Bossroo and it is appreciated. I see around these parts everyone wanting to be a "farm" when they are really a hobby. It will catch up with them and the back taxes they are going to be responsible for won't be pretty.


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## alsea1 (Aug 28, 2014)

I just wish that they would simplify tax reporting.


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## Baymule (Aug 28, 2014)

I wish they would do away with the IRS and go to a flat consumption tax. No tax filings, just pay up when you buy something.

Thanks for the heads up, most of us don't need the warning, but it is good to know anyway.


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## Bossroo (Aug 28, 2014)

I haven't heard of any auditor that is happy with this new system either... it will be more time consuming and more detailed too, and in turn crates a backlog of cases generated by computers only that look for  anomalies in tax returns .  The auditors want the audits to be more simple too, however when some tax payer becomes unhappy with their tax assessment and file a law suit, new rules and regulations are generated to cover " all the bases" which in turn muddies the waters.   Here is just a sample example from a few days ago...  Tax payer owns 40 acres, plants conifers as forest trees on 4 acres,  60% of trees die first year.  Replants this area and 75% of  trees die that year.  Replants once again to replant area of dead trees.  On their 3 years of tax  returns this tax payer just moves the decimal point over on the loss of forestry inventory ( from 4 acres to read as 40 acres.   Tax payer very unhappy that this "error" was uncovered and has a tizy fit and accuses auditor of incompetence,  and ignorance.  This tax payer wanted a "large loss"  ( moved decimal point , first to increase planting costs, then next year's tax returns to cover losses, next year's tax returns to cover the new losses )  so that he could charge the 3 year farm loss from  schedule F to offset large outside income to lower tax bill. Auditor showed tax payer satallite images of his property to prove " error".  Tax payer's accountant prepared the tax returns and just used his client's facts and figures say so ( monkey see monkey do... easy work, large bill. ) and didn't bother to ask any questions  to file the tax returns. Tax payer threatens to sue.


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## Bossroo (Aug 28, 2014)

Baymule said:


> I wish they would do away with the IRS and go to a flat consumption tax. No tax filings, just pay up when you buy something.
> 
> Thanks for the heads up, most of us don't need the warning, but it is good to know anyway.


Doing away with the IRS sounds great in theory, but what will the generations of those folks receiving welfare now  as well as the new illegals receiving welfare do when they then have to pay NEW AND HIGHER sales  taxes on everything that they buy ?   Oh yea, raise taxes some more on everyone !!!


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## Baymule (Aug 28, 2014)

Do away with welfare too. Dumb idea to start with, 3rd, 4th generation welfare non working parasites should be given strong doses of ivermectrin..... JMO....... if they use OUR money to buy THEIR stuff, then they would be paying taxes too!


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## Bossroo (Aug 30, 2014)

Another example : Current norm for audits ...  A tax payer has been extending his audit time now going on 5 months with set appointments postponed, missed and / or  then reset.  His next audit appointment was set by him 3 weeks ago to next Wednesday Sept. 3 2014 as he couldn't possibly attend any sooner as he needs more time to gather more paperwork as evidence to lower his tax bill.  His CPA was to attend the audit as confirmed 3 weeks ago.   The CPA also has been dragging his feet, etc. Then yesterday, Friday at 4:30 PM this CPA calls to postpone the audit appointment to early October as he could not possibly make this appointment.  The  NEW REALITY of this IRS flow chart will hit this tax payer as well as the CPA right where it hurts ...  Since this little gem goes into effect on Sept 2, 2014, and this  CPA can't possibly attend the audit on Sept. 3  that they agreed to. The IRS tax auditor informed this CPA and called the tax payer and informed them of the consequences of not attending.  GUESS WHAT ? If these  two miss the appointment, the IRS auditor  HAS TO  ISSUE A REPORT  OF TAX DUE  as well as a TAX BILL based on the paperwork evidence already submitted.  GUESS WHO will be REALLY TICKED OFF ?   The tax payer is now liable to the new tax bill for lack of further evidence. The CPA will NOT be able to send the tax payer a new and much higher bill for more hours of his time . Tax payer will file paperwork to reconsile the tax audit as he sees it.  The Tax court will have a larger case load.  The  IRS Revenue Agents will make a personal call at tax payer's place of business to explain the facts of life if the tax bill is NOT  PAID. The tax payer will file a law suit naming his CPA as a defendant. The said CPA just may be subject to audit at his place of business at an IRS set time.    Oh my !!!!!           Still early to gather all PAPER TRAIL evidence ( spread sheets and/ or computer records NOT accepted as evidence )  and keep very good records in a safe place to keep it handy IF one is audited.


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## alsea1 (Aug 30, 2014)

Dang. I guess I better start getting my records in order so I'm ready. Might as well be prepared.


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## Baymule (Aug 31, 2014)

They hate us.


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## Bossroo (Sep 1, 2014)

Who be they ?  We the people elect Congress and the President. The president appoints and Congress approves or rejects the appointments. Congress makes the laws, the judges interpret or declare the laws constitutional or unconstitutional .  Schools somehow fail to teach Econ 101 , constitution, and ethics.  The IRS only does what they are told  to do.


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## Bossroo (Sep 6, 2014)

Get this ...  yesterday during an audit for her business,  this lady listed her breast enlargement  from flat to WOW as an business expense.       Her business is whitening teeth !  Seriously ???      This claim was rejected .


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## greybeard (Sep 8, 2014)

Gonna need a lot more than a good dose of ivermectrin to fix this mess. Lute and burdizzos


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