During an audit, the IRS allowed only 80 percent of my internet and phone bill as a deduction.

The information below was provided to us from Bradford Tax Institute.

 

Question

 

During an audit, the IRS allowed only 80 percent of my internet and phone bill as a deduction. The auditor said that 80 percent was the amount her gut told her to allow. Can the IRS do that?.

 

Answer

 

Yes! The IRS can allow or disallow pretty much whatever it wants in an audit of your records. At the audit stage of the game, the burden of proof is on you.

 

Here, you have the IRS willing to give you 80 percent. What proof do you have that you deserve more than 80 percent?

 

That’s the question. And it’s the answer.

 

When you think about your proof, the 80 percent might look pretty good. On the other hand, you might have proof to make the IRS eat that 80 percent. You have a choice: take the 80 percent or prove that you deserve more.

 

Don’t forget: at this stage of the game, the burden of proof is on you. And frankly, when it comes to tax law, you should always consider that the burden of proof is on you.

 

May 10, 2022 | DWHuff Consulting

Check out our blog for more content to help achieve financial freedom. As we learn new things we frequently share and discuss.We offer something for everyone through various pod casts, blog posts and emails. To get David's Free Newsletter just Click "Get Newsletter" and enter your email address