Anyone ever get audited by the IRS?

[John Morgan]

Just curious if anyone has ever got red flagged or a random audit from the IRS for their rental investments. I haven’t yet, but wondered what that experience was like. I keep good records, but hope I never have to go through something like that!

[Greg O'Brien]

@John Morgan the last audit I went through involved a client, who in prior years, prepared his own business return. Almost every deduction was ending in 00, like $500, $1,000 etc.

In person audit at the IRS was right after that big govt shutdown. Auditor was very nice and really, we came to a good win win. She needed to move the case and my client needed a win on the $s owed. She actualy stated the red flag appeared to be his mileage deduction. We had no log, but recreated it on his calendar and she allowed about 50%.

Audits arent black and white, more of a negotiation from my experience.