Sue Tietz Thank You Letter to Tom Copeland for IRS Audit Help
April 27, 2012
Dear Tom,
I want to thank you so very much for all of your help through my recent IRS audit and subsequent appeals. It was a very long journey. It was often exasperating and frustrating, and sometimes overwhelming.
I truly appreciate your prompt responses every time I called or emailed. I know that had I not had you guiding me through this seemingly unending process the stress of proving of my deductions would have been almost too much. Your knowledge and expertise were truly a Godsend.
Through the initial audit you helped me every time the auditor requested information and verification of my records. You gave me the verbiage to use and assisted me in exemplifying the professionalism of child care providers.
The appeals process was another new avenue I travelled successfully with your guidance. Initially I was told by an enrolled agent that by going to an appeals without the presence of a tax attorney or enrolled agent I was “being thrown to the wolves.” Because of you the audit result was great news and most of the deductions the auditor disallowed were given back. When I told the enrolled agent of the outcome she was amazed and congratulated me and the attorney who had guided me through this process.
Things I’ve learned from this audit:
Although I kept what I considered to be detailed records I have been reminded that there is always room for improvement.
Since I was audited, I keep MUCH better records of my time. I have planner & faithfully write down everything I do that is daycare related and the amount of time I spent doing it. I also keep my mileage in the planner. By everything I mean putting supplies/groceries away, cleaning, prep and cleanup time, meal planning, advance meal preparation, and clean-up from the that preparation, and any time I spend in my home/yard that is directly related to the daycare.
I now go through my receipts and categorize what I spent on daycare or what I have spent on personal items. In the past I estimated a lot of this but after actually separating it out I have found that it comes to roughly the same amount. It is a tiny bit more time consuming at the time I do it, but it was much more time consuming when I was audited.
I no longer use the actual expense for my food. I have discovered that the difference between actual expense and the rates allowed by the IRS are very minimal and now I don’t need to worry if there is something questionable on my receipt.
In 2009, the year of my audit, my tax preparer did not file form 8829. He took the deductions, but didn’t break them apart. I don’t know if this is what raised the flag for my audit or not, but I now make sure that this form is part of my return.
To other providers who may ever find themselves in the intimidating situation of being audited I suggest keeping your wits about you, stand strong, and have Tom Copeland in your corner!
So many thanks again, Tom, for helping me navigate this experience. I feel that without your guidance and assistance the outcome of my audit might not have been the same.
Sincerely,
Sue Tietz
