Question

During an audit, the IRS allowed only 80 percent of my internet and phone bill as a deduction. The auditor said that 80 percent was the amount her gut told her to allow. Can the IRS do that?

Answer

Yes! The IRS can allow or disallow pretty much whatever it wants in an audit of your records. At the audit stage of the game, the burden of proof is on you.

Here, you have the IRS willing to give you 80 percent. ... Log in to view full article.