My business is being audited by the irs. The audit letter states it is a 941 audit, I am not on payroll and never have been. I take officers compensation and put it on a sch c on my personal taxes to pay social security and medicare. The auditor is ripping apart my return and preforming a full audit on my return, asking about personal expenses I paid through my corp eventhough I did not deduct it and paid taxes on that money. If the audit was for 941 how can she do this?
I feel like she is not conducting the audit correctly. When on the basis of 941 reports. Does anyone know what I can do?