I am a single. unmarried,Postdoc on H-1 visa (earlier on J-1), Since last three years, I used to submit tax return by filing through a tax preparer. i was not aware of what he was doing. I just used to sign and mail it. He included too many itemized deductions, contributions/credit hope etc, which accounted for more than standardized deduction for single unmarried individual. Heprepared in the same manner for past three years. But Now, I received and IRS audit mail for tax year 2005.
They are asking me to show the documents for supporting my deductions or return the money with penalty and interest ($3,660---huge money).
1) how should i respond to IRS audit?
2) If I pay back the money, ...are they going to audit for remaining years?
3) does it going to affect my green card process at later stage?
4) is it a good idea to submit amended version?
5) or is there any way to make/show partial documents?
6) do they think it as tax evasion....and act differently?
7) how could I control the damage?
8) is it a good idea to submit amended version to year-2006.
I consulted CPA and attorneys they are of different opinion.so, whoever encountered similar problem and sovled it, please let me know.
hope to hear answers ,if anyone had encountered same problem
and suggestions to solve it
You have landed yourself in the biggest trouble of your life- never knew postdoc guys would be so naive (aka stupid)- (you sign a document presented to you by somebody and you dont even aska question. take off ur nose from your books for a while & learn about life)
you have 3 options (in all you will have to first pay irs & then..) :-
pay up to IRS ,
fight with irs & get all copies of receipts, etc. and study your tax returns ,
fight with that tax preparer - when he prepared fpor you there should have been an agreement or contract and threaten him that u will report him to the irs & cops.
and pray irs doesnt open up all ur years - then you can kiss ur posdoc & ur future goodbye.
tlk to a immigration & tax lawyer asap. first pay to IRS
Tell the tax preparers' name so that others dont get sucked in by her. report her to the better business bureau- warn her 48 hrs in advance. and keep copies of all going with irs- highly probable u will get the same audit thing from ur state also.
and study all ur tax returns like ur doct. (dude, u are a Phd this should be peanuts for u) - one thing all shoulkd know nowadays if ur tax is not cleared up they dont process ur cae.
A yr back v got a ltr frm IRS stating that v didn't pay the tax for certain amount. Actually v didn't receive that amount frm my employer so v sent a ltr 2 IRS explaining the situation & so after that no ltrs frm IRS.
So if u know u r right then send a mail 2 IRS.