Discussion:IRS audit and shared personal checking account
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Discussion Forum Index --> Advanced Tax Questions --> IRS audit and shared personal checking account
Discussion Forum Index --> Tax Questions --> IRS audit and shared personal checking account
| 24 June 2009 | |
| I have a client whom the IRS is auditing his 2003 Sch C - filed late due to hurricanes - his building was destroyed with all records. I have him getting his business account statements and checks from the bank, IRS also wants his personal checking account information.
Here's the hitch. During that time he had a joint personal account with his girlfriend, who also owns a Sch C business (and is current on all her tax filings). Girlfriend objects to giving the personal checking account information to the IRS. She is concerned IRS will pull her into the audit to justify her deposits into the account. Can the IRS compel her to give the records? | |
| 24 June 2009 | |
| If he was a joint owner on the bank account why can't he go directly to the bank and get the statements? That's what the IRS will say. | |
| 24 June 2009 | |
| girl friend has nothing to fear if her deposits are all legit. | |
| 25 June 2009 | |
| Yes they can. And . . . if some of the deposits are not accounted for as being from her, they will assume that they are income from his business. Each deposit must be identified either from him or her. It is not so much that it will draw an audit for her, if she was honest with her taxes, there shouldn't be a problem. | |
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