The auditor required different forms such as an attestation regarding your relationship with the LLC, rental property registration, and tax exempt paperwork.

I'll keep making money with no worries of a state auditor at my door. 

The IRS could theoretically assume you never lived in the property and tell you to "prove it" and based on the information you provide will prompt further question.For instance, if I were in the auditor shoes and auditing you, I'd consider utilities and mail forwarding, however I'd also look at bank and credit card accounts to see when the billing address was switched over.

The audit consisted of one monthly meeting with the auditor for 5 months.

Ive gone to auditor websites and whitepaged the listed owners.

I found a floor plan from the auditor's website and here it is:Now I am no expert on floorplans, but...

The auditor, a CPA, disagreed saying to play it safe, continue 1099 to her.

My full time job is to argue with jurisdictional tax auditors.  

I am an IT Auditor for banks, so I have to frequent that site quite often to get information haha.One thing I didn't mention before that I should have is that if you know a bank exists and they are not in that list, then you don't want them as a bank.

Because in my 20 years of representing people in IRS audits, I have never had IRS auditors verify whether a tax (or any other expense, for that matter) had been assessed.