IRS audits a small client with Revenue $65,000!
Our client has been selected for an Audit on the 2007 Tax Return. But, wait, this is a very small client whose revenues are less than $75,000, but it is a Schedule C client! The client claimed auto miles and travel expenses that appeared to be quite high, but the client is in the delivery business!
I would like to hear other CPA's give their experience regarding their tax clients 2010 audit experiences. What are the areas being targeted?
This would be a good forum for CPA's to give experiences and outcomes as well. Also some potential strategies one could use to assist their clients.