Discussion:Audit TP not tax return

The agent was INSISTING that she meet with the taxpayers. She even showed up at their house. This was in the Phoenix office. I wonder if the agent I was dealing with transferred to audits. Then two weeks ago I had an audit and had no problem with the fact that the auditor came to my office. Since we are both in Arizona I would be interested in being kept up on how the auditor handles this. Thanks

§7521(C)(a)

Could they not wait until the first two years are settled? Are the issues repetitive?

I agree with your questioning the fact that the IRS didn't wait until the first 2 years are settled. I found that interesting as well. Yes, the issues are repetitive, lots of expenses to offset income, a real estate investor who took advantage of the market when it was hot, and is feeling the pain now that it is cold. Rental properties sitting empty, very little commissions coming in now, etc.

I was just very surprised with the auditor's great interest in meeting my client face to face, and wanted some input from others to see if anyone else had the same experience. I do appreciate all of the feedback.

Of course, you must understand this was Philadelphia at a time when local IRS had been rocked by the Albert Nipon scandal, so perhaps this was a reaction to it. http://www.time.com/time/magazine/article/0,9171,954471,00.html

I do not plan to "disengage and refer them to a practitioner who won't ignore this advice". I do not plan on "ignoring" the advice I received, although my original thoughts were to keep the client away from the auditor anyway. I was simply surprised at the response, and her extreme interest in meeting my client. I have not had this experience previously, and was requesting feedback from other professionals, as to whether or not they also had a similar experience. I thought this forum was to engage in professional discussions, and if I am mistaken, my apologies to all.

or I could have been nice and let others lambast you with harsher words.

The loose cannon factor to me is more a reason to keep them away than their fear of IRS. When I asked a client about a lease transaction in a tax shelter, he explained it to me this way: "Sid and I would meet once a year and swap checks." At that point I knew we needed to settle without a trial.

I had a client who was a pretty famous football player and a handsome guy with a way with women. The auditor was a lady in her 50s who had long, straight, graying hair -- long enough to sit on. (Made me think of Agnes Gooch in "Auntie Mame" -- "But, Mrs. Burnside, I can SIT on my hair!" "Now why in the world would anybody want to do a thing like that!" snaps Mame.) My client took one look at her and exclaimed admiringly, "You know, my 7-year-old daughter would KILL for your hair!" After that he had her in the palm of his hand. She gave us everything she possibly could and a couple of things she probably had trouble justifying.