I sold my company and I was audited late last year for records from 2016 return (2015 transactions) for my sold business.
I had around 260K in deductions that year, but I can only find around 150-155K worth.
If not able to find the rest or recreate them, can I disclaim the rest and just send them a check for penalties/interest (that my accountant determines) on the deductions I'm not able to back up?
It is very unwise to try to represent yourself in a federal income tax audit: you could end up with assessed tax liabilities that it will take you years to pay off. You should consult a tax professional immediately -- CPA, enrolled agent, or tax attorney. He/she can help you get out of the mess you are in.
Ms. Willi is a tax attorney, CPA, and Ohio-Certified Specialist in Estate Planning, Trust & Probate Law, with offices in Westerville, Ohio. She serves client families and private business owners throughout Ohio. Ms. Willi responds to Avvo questions as a public service to help educate and provide general guidance to questioners, but her responses are not legal advice and do not create an attorney-client relationship. Her posts are provided for informational purposes only and are not a substitute for advice provided by an attorney or licensed tax professional. Her phone number is 614-890-0500 and her website is www.willilaw.com.
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