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Sole proprietor, no employee audited?

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  • Sole proprietor, no employee audited?

    I'm on a roll now feeling paranoid about audits, even though I know the chances are very slim. I guess I must be hunting for something to worry about

    Does anyone know of sole proprietors with no employees being audited? That's what I am. Does it usually happen to people with employees?

  • #2
    I don't think it matters what you are. If the Internal Ripoff Service wants to pick your name out of a hat and audit you they can. I think ALL of us worry about the possibility of being audited even those of us doing things right and proper and trying to have our ducks in a row. It is because of the stories we hear about the nightmares others have endured. I believe this is exactly how the IRS wants everyone to feel......terror at the thought of them. I hope we get someone in office who will rectify this situation.


    • #3
      My sister was just audited and she is a sole prop no employees. Not a groomer though


      • #4
        Statistically you are much less likely to have a standard audit if a CPA prepares your return.


        • #5
          Back in the early 1980's I purchased my first home. There was a 2 year window that you could write off weatherization of your house to save energy. The first year I wrote off $500 for storm windows. The next year I took off $20 worth of caulk. Unbeknownst to me, the 2 year window had closed and the caulk was not an allowable write-off. Three years later, the IRS fined me over $1,000. I didn't have much $$ then, so I called the IRS to make payments.......they told me "We are not a lending institute".......I had to go to the bank and take out a second mortgage to pay off the yes,.....the IRS can go after anyone they choose to. I can't tell you how much $$ the government must have spent on going after my $20 caulk write-off.

          Happy buying expensive caulk

          Dolly's Barking Bubbles, LLC


          • #6
            As a business - sole proprietor or IC- have a professional ( licensed and established not just a friend who has a computer) do the taxes. The rules change at least every year.
            Whoever prepares the forms should also be there for any audit or challenges.

            Learned this adage a while back - never go into court without a lawyer and never go to a tax audit without your accountant.