Tax Audit

[ted mcmeekin]

WV is supposed to be transitioning to private competition on workman?s comp. This year insurance companies can offer workman?s comp at rates set by the state (real competion huh) In 2 years they say they will remove rate mandate--we will see. The state has set up their own company and with it set new rates and a minimum fee plus surcharge to cover all the losses from years of mismanagement. I called and raised hell and was told that they will still mandate rates by private companies--I cancelled workman comp insurance and dropped one part time employee. I told the bureaucrat that he was incompetent and should start looking for work if they truly set up competition for workman?s comp. He was mad.

Two weeks later I was notified that we would have a WV tax audit.

hmmm!!



hmmm!!

Ted

 

[pitzerwm]

I would start a letter writing complain, starting at the Governor's office and end up with the media there during the audit. Of course, you better be clean. I'd make sure that his name was all over before it was over, seems to me that there isn't anything else they could do to you.

I once told an insurance cost reduction engineer to get F'ed Ended up costing me $27K. I have still told people to get F'ed, but I always remember that $27K.

 

[rph9168]

I suggest you talk to a tax attorney before the audit. It could save you more money and grief than you will know. I remember a wash a few years ago that was audited. They came up with a figure of over $100,000 in back taxes. They got a tax attorney and got it reduced to around $35,000 but they told me they probably would have had to pay little or nothing if the attorney was involved from the beginning not to mention the time and energy involved.

 

[Sequoia]

Audit

Many years ago, I was on the wrong end of a junior, newbie, and overly zealous state sales tax auditor. He found some items he wanted me to pay for, and sent a demand letter.

I contested ..... believe it or not ..... a crummy $60 tax charge that was assessed for $1,000 of custom software work I had done. (Labor is non-taxable; tax rate back then was 6%.)

The junior auditor informed me he had already signed and submitted his audit, and if I didn't comply exactly as he had written he "just might have to come back, spend several weeks opening up every book and record he had not yet seen, go interview my customers, and much more." Clearly a threat.

I wrote a letter to my local Congressman and pointed out the benefits my company was to the community and the threatening nature of the auditor. He, in turn, wrote a letter to the state sales tax folks.

Shortly thereafter, a senior tax audit manager showed up, did a cursory review, and announced that they had found about $1,000 in overpayments I had made. They intently asked if I would accept the ~$1,000 refund from them if I would call off the dogs-- i.e. the Congressman. I accepted.

I rented a limo, took friends out for a nice dinner with the most expensive wine we've ever had-- blowing the whole thing. Courtesy of my tax folks.

God Bless America.

 

[JimmyJaffa]

It never pays to **** off the preacher!

 

[ted mcmeekin]

Our accountant will handle audit and knows most auditors. He has been great and we should not have any significant problem. One thing I learned from another business owner is that the day the audit is complete records for that period can be destroyed.

Seems there currrent witch hunt is on out of state purchases w/o sales tax. We should be ok here also. WV joined about 17 other satates to require that sales tax be charged on out of state purchases. They lost as the judge said it was unreasonable to expect a company to gear up to handle 17 different tax programs.

They did vote in a use tax but burden on purchaser.

Ted

 

[Sequoia]

They lost as the judge said it was unreasonable to expect a company to gear up to handle 17 different tax programs.

Back when I used to file California state sales tax returns, there were at least 17 different tax rates just for sales within California. Umm, on top of the the in-state sales tax rate the Bay area had another .25 percent transit fee, Sacramento had a .50 percent fee for something, etc. etc. It took us hours to try to even get close to an approximated number-- good thing those returns never got audited, I guess.

 

[Skipper Jack]

If you are being audited for taxes, it probably has nothing to do with your dispute with workers comp. In most states those are entirely different entities. Cynics may think otherwise, but an employee in workers comp (WV Dept of Labor?) has no influence over who gets audited for taxes (WV Dept of Revenue?).

I believe your audit is merely coincidental to your dispute with a workers comp employee.

If you believe that the workers comp employee was rude or profane (and not the other way around) you can complain to your state representative. They can call the leadership of any state agency and have an incident investigated.

If you disagree with the rules or policies, again, talk to your state representative. They wrote the rules and policies - not the guy on the telephone.

 

[mac]

I remember when we got audited for federal taxes. At the time I had a small office/warehouse by Dallas. The guy came in December, and after the first day of him disrupting our business, I simply removed the electric heaters from the office. After four hours the next day of his keyboard freezing up he left. Nothing in the rules says you have to make it comfortable for them.

 

[Danny]

I remember when we got audited for federal taxes. At the time I had a small office/warehouse by Dallas. The guy came in December, and after the first day of him disrupting our business, I simply removed the electric heaters from the office. After four hours the next day of his keyboard freezing up he left. Nothing in the rules says you have to make it comfortable for them.

He he he thats funny!