Help!! Audited on my 2021 Taxes over baseball cards!!

[bobbyw8469]

Still dealing with this. Dealing with the government is a nightmare. New info coming soon.

[bnorth]

Originally Posted by bobbyw8469

Still dealing with this. Dealing with the government is a nightmare. New info coming soon.

I have been audited by everyone who can and yes it does suck. I was lucky and had a real business and accountants who took care of everything so it wasn't too bad. Can't imagine how messed up your ordeal with the IRS is.

Did you try the hobby approach?

[bobbyw8469]

Originally Posted by bnorth

I have been audited by everyone who can and yes it does suck. I was lucky and had a real business and accountants who took care of everything so it wasn't too bad. Can't imagine how messed up your ordeal with the IRS is.

Did you try the hobby approach?

I paid a tax person and she redid my entire taxes. She took out the deductions of my home office to give the IRS a "win".

[OhioLawyerF5]

Originally Posted by bobbyw8469

I paid a tax person and she redid my entire taxes. She took out the deductions of my home office to give the IRS a "win".

She took out the home office deductions because you yourself said you are a hobbyist, yet filed a schedule C and took deductions only a dealer is allowed to take. People need to hire a CPA BEFORE they file taxes, not after they get audited.

[bnorth]

Originally Posted by bobbyw8469

I paid a tax person and she redid my entire taxes. She took out the deductions of my home office to give the IRS a "win".

Glad you hired a professional. Even when I ran a real tax paying construction business out of my home my accountant wouldn't write off "home office" expenses. He said it always causes problems and the little I might save wouldn't be worth the trouble if audited.

Do you still sell and if so have you decided to became a real business or still trying the "hobby" route. I am interested in the differences if you decided to go the business route.

[e107collector]

Schedule Cs are highly scrutinized and are usually audited the most out of all the returns we have filed out of our firm. Odds are they will get you on something. Very few audits end in a no adjustment.

[e107collector]

I’m an IRS Enrolled Agent, and have worked for a CPA firm for 19 years. The last few audits I worked on, have taken 12-18 months to complete. It’s a long drawn out process. The auditor you are dealing with, is working on numerous audits at the same time.

Plus after COVID, some of the auditors are working remotely from home, with limited resources.

Hopefully you’ll get it resolved soon, and can move on with limited exposure. You can always appeal their findings as well.

All the best, and keep the board posted as it progresses.

Tony