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Daycare and Taxes>Tax Audit Advice?
snbauser 11:11 AM 04-08-2014
I got a letter yesterday from our state unemployment office that I am being audited. My scheduled date is next Tuesday although I have called to try and reschedule it because I am closed and out of the state for the week. I am being audited for the 2012 tax year. I had employees back then but then closed my business for a few months at the end of the year, reopening in 2013 as a smaller daycare without employees. I pulled out all my copies of my taxes, income statements from MMK, state tax forms, federal tax forms (both quarterly and annual), time sheets, and pulled all the payroll information off of Intuit for that year. What should I expect? What else should I have ready for him? I am really nervous and it's going to be challenging to deal with the auditor here while I am trying to care for 5 preschoolers.
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melilley 11:25 AM 04-08-2014
Did you go through a company to have your taxes done or did you do them yourself? If you went through a co. they may be able to help you through the process. I know my tax lady will come to an audit if it ever happens to me. Just a thought. Sorry you have to go through this!
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Childminder 11:32 AM 04-08-2014
Call Tom Copeland.
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Great Beginnings 12:19 PM 04-08-2014
Biggest mistake I ever made was having employees. I closed my business and reopened without employees and the same thing happened to me. Must be a red flag to them for some reason. In our state we have to have disability and workers comp insurance and proove we paid the taxes. I had H&R block do my insurances so it was pretty easy. They got in contact with the labor department and sent copies of what was needed. I did end up owing something for some reason, can't remember what it was. It was minor though.
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TomCopeland 02:36 PM 04-08-2014
Originally Posted by snbauser:
I got a letter yesterday from our state unemployment office that I am being audited. My scheduled date is next Tuesday although I have called to try and reschedule it because I am closed and out of the state for the week. I am being audited for the 2012 tax year. I had employees back then but then closed my business for a few months at the end of the year, reopening in 2013 as a smaller daycare without employees. I pulled out all my copies of my taxes, income statements from MMK, state tax forms, federal tax forms (both quarterly and annual), time sheets, and pulled all the payroll information off of Intuit for that year. What should I expect? What else should I have ready for him? I am really nervous and it's going to be challenging to deal with the auditor here while I am trying to care for 5 preschoolers.
I think that the state thinks you still have employees. It may be an issue of one of your past employees filing for unemployment benefits. So, your records should set them straight. Bring what you have. Call me at 651-280-5991 if you want.
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snbauser 05:05 AM 04-09-2014
Originally Posted by TomCopeland:
I think that the state thinks you still have employees. It may be an issue of one of your past employees filing for unemployment benefits. So, your records should set them straight. Bring what you have. Call me at 651-280-5991 if you want.
Thanks Tom. I figured somehow I probably got flagged because I had employees for several years and then suddenly didn't have any and yet I am still open. But I have all my records that can back up the number of kids I had vs what I have now and why I don't need employees anymore. I think I have everything they want to see and I have nothing to hide so I'm hoping it will go okay. I am probably more nervous about the fact that he is coming here for the audit while I have a house full of kids. It's not like I can sit at the table and go through things with him while 5 kids run around unsupervised.
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snbauser 01:17 PM 04-09-2014
My audit has been rescheduled for this Friday at 10am.
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snbauser 11:37 AM 04-11-2014
And after rescheduling my audit and him saying he would be here between 10-10:30 today, he didn't show. No call, no email, and no show. I am closed next week and away for vacation and I told him that so I'm not sure what is going to happen now. I know he said he had to turn his stuff in by the 24th so not sure what happens now. I emailed him during naptime to find out what was going on but he also mentioned he tries to leave early on Friday's so don't know if I will hear back today.
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TomCopeland 04:04 PM 04-11-2014
Originally Posted by snbauser:
And after rescheduling my audit and him saying he would be here between 10-10:30 today, he didn't show. No call, no email, and no show. I am closed next week and away for vacation and I told him that so I'm not sure what is going to happen now. I know he said he had to turn his stuff in by the 24th so not sure what happens now. I emailed him during naptime to find out what was going on but he also mentioned he tries to leave early on Friday's so don't know if I will hear back today.
What a hassle. Since you've emailed him, I'd do nothing until you hear from him. Don't worry about some deadline. They have to give you a reasonable amount of time to respond. The deadline of the 24th is not final.
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