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Whatever you do, respond to everything by their deadlines! I ignored an audit notice thinking it wasn't legit (it looked kinda scammy) and ended up with a default assessment that was WAY worse than if I'd just responded with my documentation. Ended up costing me an extra $2,300 plus the stress of dealing with a collections case instead of just an audit.
I'm going through my first audit right now too and honestly, reading everyone's experiences here has been incredibly helpful. My audit is for home office and mileage deductions totaling about $4,200. One thing I learned from my tax preparer is to organize everything chronologically and create a summary sheet explaining each expense category. The IRS agent told me they appreciate when taxpayers make their job easier by presenting organized documentation with clear explanations. For your missing receipts, don't panic - bank statements showing the transactions can often work as backup documentation, especially if you can provide context about what the expense was for. I had to recreate some documentation using credit card statements and calendar entries showing business meetings that corresponded to meal expenses. The waiting is definitely the worst part. My audit has been going on for 2 months now and I'm still waiting for their final determination. But so far the IRS agent has been professional and reasonable about working with the documentation I've provided.
Has anyone successfully gotten the IRS to waive penalties for late 941 filings? I'm in a similar position but afraid of getting hit with thousands in penalties even though we paid everything on time.
Yes! I just went through this last month. Request first-time penalty abatement if you've had a clean record for the past 3 years. I called the IRS (after waiting 2 hours) and specifically asked for this, and they waived about $3,400 in penalties. You need to be persistent tho and specifically mention "first time penalty abatement" or "reasonable cause abatement.
Thanks so much for this info! That gives me some hope. I've never had any issues with filing before, so hopefully they'll consider the first-time abatement. $3,400 in savings is huge for a small business like mine.
I'm dealing with a very similar situation right now! My small business also used QuickBooks for payroll and tax payments, but somehow we missed filing several 941 forms in 2022. I just got an IRS notice last week showing discrepancies between our W-2s and what they have on file for quarterly returns. One thing I learned from calling the IRS Business Tax Line is that they have a specific department for employment tax issues (different from individual tax problems). The representative told me that as long as you can show you made the payments on time through EFTPS or QuickBooks, they're usually willing to work with you on penalty abatement. She also mentioned that many small businesses run into this exact issue when winding down operations - the focus shifts to closing everything up and sometimes the quarterly filings get overlooked even though the payments continue automatically. I'm planning to gather all my QuickBooks payment confirmations and file the missing quarters this week. The IRS gave me 30 days to respond to their notice, but they said filing sooner rather than later shows good faith compliance.
Just to clarify for everyone - the PATH Act only applies to returns claiming EITC or ACTC. If you're not claiming either of those credits, you're not actually under a PATH hold even if WMR shows that message. It's just their generic processing message they use for everyone during busy periods. Are you claiming either of those credits? That would explain why you're seeing the PATH message specifically.
Thank you so much for posting this! I've been checking WMR obsessively for the past two weeks and driving myself crazy. Just checked my transcript after reading your post and sure enough - there's my DDD for 3/31! The WMR tool still shows "Your tax return is being processed" with no mention of when I might get my refund. This is such a relief because I was starting to think something went wrong with my return. Really appreciate you taking the time to share this tip - it's going to save a lot of people unnecessary stress during an already stressful time.
Just got my audit notice too š° They're asking for detailed records of fuel purchases, business use logs, and proof of qualified activities. The letter mentions they're specifically targeting 8849 forms from 2022 due to "compliance concerns." Anyone know if there's a standard response template or should I just gather everything and send it in?
There's no standard template but definitely organize everything systematically before sending. Create a cover letter explaining each document, separate your receipts by month/quarter, and include business logs showing dates/purposes. Don't just dump everything in a box - the cleaner your response, the smoother the process usually goes.
Same here - got the audit letter last week and I'm honestly terrified. I run a small landscaping business and claimed fuel credits for our equipment, but my record keeping wasn't the greatest in 2022. Does anyone know if they accept reconstructed records if you can prove the business expenses through bank statements and invoices? I have most of my fuel receipts but some are faded or missing completely. Really kicking myself for not being more organized š£
Finley Garrett
Has anyone tried contacting Keeper through Twitter? Sometimes companies respond faster on social media than through their official support channels.
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Madison Tipne
ā¢I actually got a response from them on Twitter within an hour when I was having issues last tax season! Their handle is @KeeperTax
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Keisha Jackson
I'm actually dealing with this same issue right now! I'm a freelance consultant and have been using Keeper for about 6 months. The bulk editing limitation for percentages is super frustrating, especially for mixed-use expenses like home office utilities and phone bills. One workaround I discovered is to create separate "rules" for different expense types in Settings. You can set up automatic categorization rules that also apply default business percentages. It's not perfect for existing transactions, but it helps going forward. For your existing 75+ car expenses, honestly the export-to-spreadsheet method mentioned earlier might be your fastest option right now. You can export, do a find-replace to change all the percentages from 100% to 56%, then re-import. It's clunky but beats editing each transaction individually. I've also been tracking this as a feature request with them - apparently it's one of their most requested features so hopefully they'll add proper bulk percentage editing soon!
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