DELETE

I am not a tax expert, but have had some experience. First, don’t throw proof related to your tax deductions away until at least 7 years past the filing (for this very reason). Second, consider how much they are challenging to determine whether it is worth hiring qualified help.

You say your “return” was only $3,000, but I’m assuming you mean your refund since you wouldn’t file a return with deductions on $3,000 income.  The amount of your refund really isn’t relevant to whether they will challenge your deductions.

I assume you will never again use the accountants you mentioned. A good tax accountant’s real value is not in the filing, but in defending their work, albeit at a price. Did they say pound sand or that the amount involved isn’t worth you hiring them? If the former, I might withdraw the “fire them” piece, but I would expect some support from them.

If you can produce legitimate documentation, you can walk out unscathed (other than the stress and the time involved). If you can’t produce it or a legitimate copy of it, you’ll end up paying at least some additional money.

Hopefully, the experts will chime in soon.

Oh, and don’t miss an appointment with them. Trust me on that.

I called them up and the only person that would talk to me or email me back was the front desk guy. The actual tax preparers have not taken the time to call me back or talk to me whatsoever. They just pass information to the other guy. Which was, gather all of your information that the IRS is asking for then make an appointment. Of course the only appointment they have available are a few days before the deadline lol. I've been going there for probably 10 years. Ive never had Tax issues, so I only see them once a year. I don't know if they are avoiding me because they know that they are the ones that did those taxes, or some other reason. But I find it odd that they won't even talk to me to even give me an idea of why I was audited and how much this could be costing me, worst case scenario. Worst case scenario being that I can't find a few receipts from three years ago. Very confusing.

Gather everything that you do have that proves you took those deductions legitimately. Best review exactly what the IRS is looking for. Bring only stuff that they are requesting and a copy of that year’s return.  Most of the time it’s where they just want to see that you can prove you didn’t make anything up. It’s ok to be honest and say you threw something out that you should have kept. Don’t discuss anything outside of what they are looking for, they can use what you say against you on your returns. I’ve had a couple audits and one was I forgot to file something that slipped out the folder before I gave it to my accountant and the other time company switched payroll companies mid year and both sent the W-2 they had. Unfortunately both payroll companies were using two different addresses for the same company I worked for, sent a letter explaining basically that and all was good. Ended up just owing on the other one. It was overall not a painful process, but I know make sure I’ve got documentation for everything, being audited increases the chances of getting audited again.

Definitely would find a new tax preparation person, preferably an accountant. The good ones will make you provide them with the documents to get the deductions and possibly would still have a copy in case you lost yours.  Also it’s ok to call the IRS and ask questions, it’s what the call center is for. But good luck getting a hold of anyone, they are severely understaffed.

A line item audit isn't that bad. They just want the proof you said you had to deduct the items. How old is it? Why did you throw the proof away if 3 years or less?

I had one 2 years ago. They audited a line item for tax exempt interest. I did not have any tax exempt interest and sent a letter explaining that.

Got it all taken care of. Thanks everybody. I had to pay them about 3K. I am beyond angry at my tax preparer is they totally screwed me over. They did not know what they were doing. But, in the end I know my taxes are my responsibility. But I am not a tax expert lol. Hence, why I thought I went to one.

how did the preparer screw you over?