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View Full Version : Just notified about IRS Audit FDX


FEDEX Slug
03-23-2010, 03:18 PM
Just curious how many other guys are getting audited. Attorney we have through Turbo Tax said he has represented several UPS Pilots.

Nothing really outrageous or complicated with our return from 2007. Wondering if they are fishing for Fedex or UPS guys or if my number just came up.

Charity and Business expenses with receipts were what they wanted.


USNFDX
03-23-2010, 04:42 PM
Is it just a mail in audit? I got that last summer. Sent in my receipts, my logs and my ezperdiem summary. They called the hounds off rather quickly.
Was a non-event.

MX727
03-23-2010, 07:07 PM
Just curious how many other guys are getting audited. Attorney we have through Turbo Tax said he has represented several UPS Pilots.



I've been audited twice in the last 4 years. One state, one federal. Audit Defense is the single greatest service insurance I have ever purchased. So simple. They hooked me up with a CPA, I sent him my stuff and he took it from there. Simple.


FEDEX Slug
03-24-2010, 09:43 AM
Just a mail in Audit.

So far I'm pleased with Audit Defense. How long did it take from time you sent in paper work to get a reply from IRS?

JetJocF14
03-24-2010, 10:21 AM
16,500 more IRS agents,,,,,,,,,,,, just here to help. :eek:

Buck92
03-24-2010, 11:20 AM
.......................

MX727
03-24-2010, 01:33 PM
Just a mail in Audit.

So far I'm pleased with Audit Defense. How long did it take from time you sent in paper work to get a reply from IRS?

You didn't send anything to the IRS directly did you? I sent all of my stuff to Audit Defense and then they sent it in. It took about 2 months for the Feds. The State audit actually was more involved. I sent all of my files to the CPA that they set me up with and then the auditor and CPA actually came out to visit and confirm some of the business deductions and equipment.

AerisArmis
03-24-2010, 06:32 PM
Yep, same thing happened to me. Since we fly into Almaty, and they speak Russian on the radio, I picked up a couple of Russian language teachers working the night shiff at Soho. Legitimate write off as I see it. Three days of "incidentals" seemed reasonable. IRS nerd said no way until I showed him the photos of my lessons. He dropped it. A win for the good guys.

jungle
03-24-2010, 06:43 PM
Yep, same thing happened to me. Since we fly into Almaty, and they speak Russian on the radio, I picked up a couple of Russian language teachers working the night shiff at Soho. Legitimate write off as I see it. Three days of "incidentals" seemed reasonable. IRS nerd said no way until I showed him the photos of my lessons. He dropped it. A win for the good guys.

Certainly a justifiable expense in my view.:D


The fact is most of us are low hanging fruit and constitute the upper ten percent or much better for their 70% of revenue collection. What better place to fish? They aren't going to spend much time on the bottom 50% where they extract about 3% of revenue.

742Dash
03-25-2010, 02:13 AM
The fact is most of us are low hanging fruit and constitute the upper ten percent or much better for their 70% of revenue collection. What better place to fish? They aren't going to spend much time on the bottom 50% where they extract about 3% of revenue.

Oddly it does not work out that way. It appears that the audit rates are:

0.81% for income < 25k
0.58% 25k to 50k
0.62% 50k to 100k
1.66% over 100k

It seems a little strange to me, but what do I know.

In our case the per diem deduction may raise a flag.

jungle
03-25-2010, 02:32 AM
Oddly it does not work out that way. It appears that the audit rates are:

0.81% for income < 25k
0.58% 25k to 50k
0.62% 50k to 100k
1.66% over 100k

It seems a little strange to me, but what do I know.

In our case the per diem deduction may raise a flag.

Interesting, what year and from where did your data come from? This is straight from the horses mouth.
---------------------------------------------------------

IRS Audits Target Wealthier People and Companies
Washington, D.C. (May 20, 2009)

By WebCPA Staff

PrintE-mailReprintsThe Internal Revenue Service has increased its audit rates of the wealthiest individuals and corporations, according to testimony by IRS Commissioner Douglas Shulman.

Shulman (pictured) told a hearing of the House Appropriations Committee's Financial Services Subcommittee that, in fiscal year 2008, the IRS conducted nearly 1.4 million examinations of individual tax returns, an 8 percent increase over fiscal year 2006. The audit coverage rate also rose from 0.58 percent in fiscal year 2001 to 1.01 percent in fiscal year 2008.

“While the growth in examinations of individual returns is visible in all income categories, it is most apparent in examinations of individuals with incomes over $200,000,” said Shulman in his prepared testimony. “Audits of these individuals increased from 105,549 in FY 2007 to 130,751 during FY 2008, an increase of 24 percent. Their coverage rate has risen from 2.68 percent in FY 2007 to 2.94 percent in FY 2008.”


In the business arena, he added, audit coverage rates for small corporation returns (with assets under $10 million) increased slightly over fiscal year 2007 by 0.03 percent. However, coverage rates for three classes of large corporations with assets between $50 million and $250 million and higher all increased. Coverage rates for partnership returns stayed even as compared to fiscal 2007, while Subchapter S returns reflected a small 0.05 percent drop due largely to an increase in the number of S corporations. The coverage rate for tax-exempt organizations increased slightly.

Rep. Jose Serrano, D-N.Y., pointed out during the hearing that Shulman’s figures contradicted the findings of Syracuse University’s Transactional Records Access Clearinghouse, which showed that audit rates for wealthy individuals had declined steeply (see IRS Audit Rate for Millionaires Plummets). Shulman disputed those findings, saying, “We think some of it is wrong and some of it is looking at unfair comparisons,” according to Reuters. The IRS’s own Web site, however, shows that the agency audited about 5.6 percent of individuals making over $1 million in fiscal 2008, compared to 6.8 percent in 2007.

The IRS Criminal Investigation Division has also been vigorously attacking egregious tax avoidance, money laundering and other financial crimes, Shulman noted. The overall number of individuals charged in an information or indictment rose from 2,323 in fiscal 2007 to 2,547 in fiscal 2008. Over the same period of time, prosecution recommendations for employment tax evasion more than doubled. The incarceration rate in these investigations was 81 percent and the average sentence was 29 months.

In fiscal 2008, IRS-developed cases related to foreign and offshore issues also resulted in 61 criminal convictions, and the average term for those going to jail was 32 months. For the first four months of fiscal 2009, there were 20 convictions, and the average sentence was 84 months.

----------------------------------------------------------

If you were looking for revenue, where would you look?:D

Sideshow Bob
03-25-2010, 06:44 AM
Yep, same thing happened to me. Since we fly into Almaty, and they speak Russian on the radio, I picked up a couple of Russian language teachers working the night shiff at Soho. Legitimate write off as I see it. Three days of "incidentals" seemed reasonable. IRS nerd said no way until I showed him the photos of my lessons. He dropped it. A win for the good guys.

Isn't language a wonderful thing? After years of being beaten down by the progressives for being so monocultural, I have seen the light and now strive to broad-en my horizons in much the same manner.:D

joepilot
03-25-2010, 07:27 AM
Oddly it does not work out that way. It appears that the audit rates are:

0.81% for income < 25k
0.58% 25k to 50k
0.62% 50k to 100k
1.66% over 100k

It seems a little strange to me, but what do I know.

In our case the per diem deduction may raise a flag.

I agree that the numbers look skewed towards the lower income range, but this is based on what the taxpayer reported in income, rather than what the Feds may believe should have been reported as income.

If you're not getting audited, you're not trying hard enough.:rolleyes:

Joe

sailingfun
03-25-2010, 08:26 AM
The one thing that will trigger a audit fast is deducting commuting expenses. Don't even attempt it and you will avoid a headache.

FEDEX Slug
03-25-2010, 11:11 AM
Everything was sent to Audit Defense.

MX727
03-25-2010, 07:45 PM
Everything was sent to Audit Defense.

Right on. :)

alwaysflying
03-25-2010, 09:31 PM
Ok guys...straight from the mouth of a previous pilot turned auditor....

There is not magic is getting audited. If you make good money, you have unreimbursed employee business expenses, the chances are you might get looked at. WHY...

Because when you return get compared to the average W-2 employee, your numbers will be out of whacked, thus upping your score...

Its really simply.....Send in documentation and prove the deductions and you are done.

MD11Fr8Dog
03-26-2010, 09:09 AM
Ok guys...straight from the mouth of a previous pilot turned auditor....

There is not magic is getting audited. If you make good money, you have unreimbursed employee business expenses, the chances are you might get looked at. WHY...

Because when you return get compared to the average W-2 employee, your numbers will be out of whacked, thus upping your score...

Its really simply.....Send in documentation and prove the deductions and you are done.

Please read this to yourself slowly before hitting the send button!

The Walrus
03-26-2010, 09:34 AM
Please read this to yourself slowly before hitting the send button!

Damn, that gave me a headache.

FDXLAG
03-26-2010, 09:51 AM
Please read this to yourself slowly before hitting the send button!

Now we know who the guy is that writes all of those assembly instructions for my "made in china" walmart purchases. :p

MD11Fr8Dog
03-26-2010, 10:03 AM
Now we know who the guy is that writes all of those assembly instructions for my "made in china" walmart purchases. :p

All your audit are belong to us!

Std Deviation
03-26-2010, 11:14 AM
Could go with the Leona ("the Queen of mean") Helmsley approach..."We don't pay taxes! Only the little people pay taxes!"

Attach handcuffs here....

Airbusdriver
03-26-2010, 12:42 PM
Everything was sent to Audit Defense.

Could someone school a lowly jaffo, what is "Audit Defense"? Is it something associated with turbo tax, your local CPA,...? You can answer here or PM me. I know I am jinxing myself, I have not been audited yet but it is always in the back of my mind that it could happen. A letter from the IRS saying we want to see you for an audit would not make my day. :eek:

MD11Fr8Dog
03-26-2010, 12:52 PM
Could someone school a lowly jaffo, what is "Audit Defense"? Is it something associated with turbo tax, your local CPA,...? You can answer here or PM me. I know I am jinxing myself, I have not been audited yet but it is always in the back of my mind that it could happen. A letter from the IRS saying we want to see you for an audit would not make my day. :eek:

Top of the list (below sponsored links)

"audit defense" - Google Search (http://www.google.com/search?hl=en&safe=off&client=safari&rls=en&q=%22audit+defense%22&aq=f&aqi=g5g-m3&aql=&oq=&gs_rfai=)

Airbusdriver
03-26-2010, 01:35 PM
Top of the list (below sponsored links)

"audit defense" - Google Search (http://www.google.com/search?hl=en&safe=off&client=safari&rls=en&q=%22audit+defense%22&aq=f&aqi=g5g-m3&aql=&oq=&gs_rfai=)

Did not use Turbo Tax.:(

MD11Fr8Dog
03-26-2010, 01:37 PM
Did not use Turbo Tax.:(

Neither does my CPA/Tax Lawyer! ;)

Airbusdriver
03-26-2010, 01:40 PM
Neither does my CPA/Tax Lawyer! ;)

Just hope I keep flying under the IRS radar.:D

MD11Fr8Dog
03-26-2010, 01:46 PM
Just hope I keep flying under the IRS radar.:D


Has worked for us so far! He is MY audit defense! My wife got audited a few yrs back when NYC was trying to make a money grab 2 yrs after she quit working and he took care of it.

Airbusdriver
03-26-2010, 01:50 PM
Has worked for us so far! He is MY audit defense! My wife got audited a few yrs back when NYC was trying to make a money grab 2 yrs after she quit working and he took care of it.

Hopefully the CPA I use will be as good in case the dreaded letter ever comes in the future.

Overnitefr8
03-26-2010, 06:41 PM
Just curious, are they asking for specific receipts on certain deductions or receipts for all dedutions, donations etc.?

MX727
03-26-2010, 07:34 PM
Did not use Turbo Tax.:(

You can still sign up, but it costs a lot more.

This package alone makes TT worth it.

TaxResources Member Center (http://www.taxaudit.com/fullmem/ProductPages/CompleteProductList.aspx)

FEDEX Slug
03-27-2010, 04:03 AM
Audit Defense is less than $50. Turbo Tax offers it at checkout and just prior to sending out your taxes to IRS.

SKYKN6
03-27-2010, 06:44 PM
I've used turbotax & audit defense for years. This year someone pointed out Pro Diem and it worked great. Easy and $1500 greater deduction than my figuring...... AMT added $600 at the finish line.:( Somehow I did not come out any better but there's peace of mind that it is accurate.:D I'll do the same next year.:eek:

machz990
04-07-2010, 09:33 AM
I've used turbotax & audit defense for years. This year someone pointed out Pro Diem and it worked great. Easy and $1500 greater deduction than my figuring...... AMT added $600 at the finish line.:( Somehow I did not come out any better but there's peace of mind that it is accurate.:D I'll do the same next year.:eek:

I've calculated my taxes for several years two ways:
1. With all per diem and unreimbursed employee expenses.
2. Without No. 1.

I find that the AMT nullifies any/most of the tax advantage and if you have a high 2% AGI threshold you may barely cross it. Is it worth the effort and potential for an audit?

FEDEX Slug
01-04-2011, 11:22 AM
Just notified week before x-mas no problem with taxes, owe nothing.

If you use turbo tax, pay the extra for Audit Defense. There were excellent well worth the money

jungle
01-07-2011, 04:07 PM
I've calculated my taxes for several years two ways:
1. With all per diem and unreimbursed employee expenses.
2. Without No. 1.

I find that the AMT nullifies any/most of the tax advantage and if you have a high 2% AGI threshold you may barely cross it. Is it worth the effort and potential for an audit?

Bingo, the AMT is moving the goalposts every year and trying to take a few deductions triggers it.
Generating a long list of deductions is also more likely to win you the audit prize.

Citrullo
01-07-2011, 04:23 PM
Test test test test

jungle
01-07-2011, 04:37 PM
Test test test test

You didn't study.

FlyByNite
01-08-2011, 08:07 AM
Test test test test

Studying for a urine test? :D

Tractor Bob
01-08-2011, 10:02 AM
any one have any experience with Pilot-Tax? HR block affiliated company. Does some marketing on APC.

NotsoFast
01-10-2011, 11:59 AM
Can you hook me up with those Russian Language teachers? моя Россия становится ржавым

Cujo
01-10-2011, 12:12 PM
any one have any experience with Pilot-Tax? HR block affiliated company. Does some marketing on APC.

Simple and straight forward. Used them the past 4 years. a very good worksheet to kick the process off. Sent in downloaded trips, schedules, per diem, 1099's ...etc ... done! Follow-up phone calls when completed for your questions and concerns. e-filed... around $200-250 ... ymmv. no issues here