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Daycare Center and Family Home Forum>Anyone Ever Been Audited?
EchoMom 07:56 PM 12-30-2012
Just wondering. My MIL does Mary Kay and they have a home office and they were audited last year. I don't know what ever came of it. It's just she's the only person I've ever known to be audited. Wondering how often it actually happens, and to little guys/girls like us?
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MyAngels 08:09 PM 12-30-2012
I think it's something like 1-2% of all tax returns are audited, so the chances of audit are pretty slim. I've heard that taking the home office deduction tends to make it more likely for an audit, though.

My DH and I got audited many years ago, but it didn't have anything to do with my daycare income, it was because his business expenses got put onto the wrong line. Needless to say, I now proof our returns several times before they get sent off .
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SilverSabre25 08:17 PM 12-30-2012
if you're audited, contact Tom Copeland, he'll help you out. I think someone here on the forum had that happen once, actually.
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MarinaVanessa 08:37 PM 12-30-2012
Originally Posted by SilverSabre25:
if you're audited, contact Tom Copeland, he'll help you out. I think someone here on the forum had that happen once, actually.
Is it because of the forum that he helps? I know that if you're an NAFCC member and you are audited he helps you for free. I recently read an article about how he helped a woman win her audit case .

As far as being audited I don't know anyone that ever has been but from what I know and have heard it's more common for FCC providers to get audited because of all of the deductions that we can claim.
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Country Kids 10:32 PM 12-30-2012
I have a friend that was audited and it was a nightmare. They would only come during her business times and she wasn't about to shut down for it but it was a very long, long day for her. You know how the kids act when someone new is there and then her stress level was so high that day. It was just something I hope I never have to deal with!
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MarinaVanessa 09:05 AM 12-31-2012
Originally Posted by Country Kids:
I have a friend that was audited and it was a nightmare. They would only come during her business times and she wasn't about to shut down for it but it was a very long, long day for her. You know how the kids act when someone new is there and then her stress level was so high that day. It was just something I hope I never have to deal with!
I would've just thrown the auditor into a bedroom and given him all my paperwork and let him have at it . It would be great to use the excuse "Well my licensing regulations require that anyone other than parents that come into contact with the children get a TB test and be cleared by a criminal background check so either come back when you have that or come after 6pm" I know it wouldn't stick but it would be funny .
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Angelsj 03:41 PM 12-31-2012
Hmm...no one came to my house. They wanted copies of all receipts, floor plan of my house...etc, etc. It ended up that I didn't get about $50 of what I was claiming in deductions because they didn't qualify for whatever reason, and it was done.
Lots of copies of stuff and a couple of phone calls, and we were done. And the guy was actually quite nice.
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Willow 09:23 AM 01-01-2013
My husband was when we were dating and it was the most insane thing I've ever seen.

Granted he didn't work out of his home, but he did have a fair amount of deductions because he works out on the road and the auditor demanded he prove them over and over and over again. I'm pretty sure he was completely incompetent and just kept losing the stuff because it would take DH days to gather what he asked for, only to be asked to gather the exact same information another month later, rinse and repeat, rinse and repeat. Got to the point where we just made a good dozen copies of everything so I could stick the exact same packet in the mail we had mailed after his last request. The auditor was a complete ass and after all was said and done, after nearly ***TWO YEARS*** of hounding him their final determination was that he had to pay back just $336.00

All of that time the idiot tried to work him over while taxpayers were footing the bill......for $336.00. And that $336.00 wasn't even for unproven expenses, the auditor simply "thought the receipts looked suspicious." Ummm....then call the Holiday Inn and confirm them dumb@ss. He could have fought it but at that point was just so desperate to get rid of him, the poor man nearly had a heart attack when he saw that final determination letter....I'm pretty I saw smoke coming from his ears when he read that's all that came of his nearly two years of incredible stress and sleepless nights
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