My wife and I operate a small business as a proprietorship for which we receive 1099s each year.
We decided to skip the fee for a CPA or enrolled agent to help us with our taxes. Instead, we opted for one of the tax preparation software programs and purchased the business model.
We also purchased an audit defense package from the software firm where an audit defense team would represent us in the unfortunate case of an audit.
Well, we have now used the audit defense package as the IRS is in the process of auditing our 2010 and 2011 tax returns.
Today, we sit with a tax bill from the IRS for $31,000 and we are most unhappy about it.
Our audit defense failed, totally, really. We have the ... Log in to view full article.