IRS Disputed Everything and We Fought to Untangle the Items Disputed.
A corporate client of mine suffered through a tough audit with the auditor coming and going in our office for a full month. The Revenue Agent disputed everything and we fought to untangle the items he disputed.
Several he disputed was the amount of rent the client paid himself for the business property and the officer wages paid to the principal owner and his wife who was fully employed there. The client did his telephone homework on local properties to support the rent on the commercial lot and building, and also prepared a list of other officer wages on officers in his business based on the size of their operation.
Still, the auditor didn't budge so I appealed to the Tax Court in Riverside. On the day of the audit, I met the Revenue Officer in the hallway waiting for the elevator.
We introduced ourselves and I explained my position. Like all good professionals, she had already read the case beforehand. "Well," she said as the door opened, "I don't see any merits to the case and will close it in your favor." I thanked her and called my client.
* Phillip B Chute is an Enrolled Agent, tested, licensed, and appointed by the IRS directly. He has prepared or supervised over 25,000 tax returns over 30 years.