Discussion:Unannounced IRS Visit at Clients Place of Business
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Discussion Forum Index --> Tax Questions --> Unannounced IRS Visit at Clients Place of Business
| 6 September 2008 | |
| I know this topic has been discussed before but I just wanted to bring it up again.
Client is involved in an almost strictly cash businees. Cash is paid for scrap metal inventory everyday. Significant amounts of cash are spent daily and many Currency Transaction Reports have been filed by the local bank. Cash withdrawals average $15,000 to $25,000 depending on the day. Apparently the IRS showed up today and asked to speak with the responsible party of the operation. Of course, he's not available when they are there. The apparent IRS agent spoke with two employees who said the agent flashed a badge and had a one inch thick file with them about the operation. They said the agent wanted a list of employee and list of all payments to contractors. When they couldn't provide the information, the agent got in his car and left. Didn't leave a card, letter, or any other documentation regarding the visit. I've never personally experienced this type of IRS investigation before. All the audits I've handled have been initiated with some type of letter requesting information or to schedule a meeting. Does anyone have any experience with these type of visits? I'm inclined to believe that the vist may have been a state department of labor visit and not the IRS. | |
| September 6, 2008 | |
| First, Matsui, I moved this to the tax forum.
Second, I have no experience with IRS audits, but this just sounds like ID farming to me. I don't think there's any governmental agent that would not at least leave a card. | |
| 6 September 2008 | |
| The ex-IRS people in this forum will correct me if I'm wrong, but I think the person was either (1) an impersonator ro (2) a CI agent. Revenue agents and officers don't carry badges. -- Larry Hess, CPA | Albuquerque, NM | |
| September 6, 2008 | |
| yep, makes you wonder if it might have been an investigator following a lead about a claimant, possibly working 'under the table', | |
| 6 September 2008 | |
| Well, if there were from the government then I am sure they were just there to help. | |
| 6 September 2008 | |
| Many years ago, I had a civil service job in NYC. One of my responsibilities was to show up unannounced to find out information. I had an id card.
I know clients that have had cash businesses that had a audit and then an auditor came into the store to observe the business in action for several days and take notes before the audit was closed. | |
Actionbsns (talk|edits) said: | 6 September 2008 |
| Natalie, one of my clients has been going through IRS problems involving payroll for about a year. The agent has never offered a card. I've asked several times and his excuse is always the they recently moved their offices to Hilo and they haven't been provided with cards. In a different area I'd be really suspect of this person, but here, it's so small and I know the person to be an IRS agent. Still no card, though. And I do think that's weird. | |
Southparkcpa (talk|edits) said: | 6 September 2008 |
| I had a client for many years in this business. They recently sold for multi millions. What you describe as operations is common place. You should ensure that the G/L is accurate, ALL transactions on the bank statement are recorded and that a list of cash payments to customers is kept. As I see it, the IRS hates this but what can they do? You may wish to ensure compliance of all cash payments out but in reality, the IRS can't shut down Sears or Macy's for cash but I am sure they comply. | |
| September 6, 2008 | |
| Matsui, please let us know what you find out. I see it's possible for this person to have been reputable, but it just sounds too fishy to me. Would someone who's working for the IRS really just ask for employee data like that? Of course, Matsui is getting this second hand, so there could be other important factors we don't know about. | |
| 7 September 2008 | |
| There were 2 "IRS" agents show up at our place of business and residency looking for the owner and refused to give names and/or phone number. I am also not sure if they are really the IRS agents since they refuse to provide any info about themselves. I will let you know more about it if you guys are interested. | |
| 7 September 2008 | |
| Maybe my solution is too simplistic ... if someone shows up claiming to be an IRS agent and has no card or identification, why not call the IRS office supervisor? If not an IRS Agent, than report it. Impersonation of an IRS Agent is a federal crime. PHOENIX MAN INDICTED FOR IMPERSONATING AN IRS AGENT | |
| September 18, 2008 | |
| On a related note, the AICPA is warning firms that someone has been posing as an AICPA rep trying to collect information on employees. They guess it might be a headhunter. | |
