How do I cover my taxe audit losses when the taxes were prepared by a local business?
My taxes, since 2003 have been prepared by a local mom and pop business. I was recently audited for my 2007 federal taxes due to an unusual business deduction. I am a single person household with no kids and very few deductions. I give them a 1 sheet list of items that I think could be deducted with receipt, they do the rest. When I received the notice, I looked at what the IRS noted as an unusual deduction and they listed amounts and items I did not give them. Last night I looked at my 2008 return and it was the same. Now I owe around $7500 and more if they look at 2008. Which type of lawyer?
First of all, most tax preparers have liability insurance and will back their work product. If not, see if your home ownership policy will. At any rate, a tax attorney will be in your best interest.