My wife and I are being audited by the IRS for her miscellaneous expenses related to her job as a Realtor. The IRS disallowed her miscellaneous expenses because we have no statement that says those were ordinary and necessary for her Realtor job duties and what she is required to pay for in regard to her employment.
The IRS has indicated that the policy or statement must be dated for the tax year (2012) and signed by an officer of the company to be considered.
Can you give me guidance on what should be stated in the statement of what is ordinary and necessary and what she is required to pay as a Realtor? She is not reimbursed for any of her normal Realtor expenses.
Can you also tell me whether the officer of the company the IRS is referring to is her broker at Coldwell Banker, or is the IRS referring to her as the sole owner of her realty business? ... Log in to view full article.