Who's been through an IRS audit?

Discussion in 'Professional Trading' started by DataCruncher, Feb 14, 2008.

  1. Do they ever show up at your house or place of business unannounced?
     
  2. Bowgett

    Bowgett

    I got a letter with date and time I have to show up with my records at the local IRS office.
     
  3. No. They usually address a specific issue and want you to support your tax return claims. Most are conducted by mail.

    There are a few, randomly selected "standard setting" audits. Those are a BITCH. They scrutinize every line of your return and every receipt you claim.
     
  4. Bowgett,
    thanks for the response. Do you know what triggered the audit? I'm trying to avoid triggering one because I have enough headaches to deal with as it is.
     
  5. Gnome,
    Thanks for the response I really appreciate. I'm worried because this year my tax situation has grown far more complex than in prior years because of my trading.

     
  6. Suggest you contact them and ask what they are specifically questioning.
     

  7. I haven't gotten contacted or filed yet. But I'm wondering, do they ever show up at a trader's house and say something to the effect of "well we gotta go look at your trading setup and computers. If it's not something we judge a professional setup, than you can't claim trader tax status"
     
  8. yes
     
  9. It's not a matter of your hardware. It's more about how you conduct your business/trading life and what it means to your attempts to earn income.
     
  10. If you have less than 8 monitors, you can't claim trader status.
     
    #10     Feb 14, 2008