First, one of your tax returns has to be flagged for an audit.

Not sure how this company survives an audit. 

2- what is the percentage of people that get audited my claiming REPS status to offset W-2?

Could you please point me to the official source so I can save it up for auditing purpose?

I’m sure there are plenty of people doing “workarounds” which WORK UNLESS AUDITED  by the IRS.  

Hello,I am looking at a mixed use property on Long Island (first floor retail plus 4 residential above) and would like to know when the most appropriate time is to ask for things like audited financial statements, tenant ledgers and/or anything I else I should be asking for? 

With that said, there is a de minimis election that allows you to expense any capital expenditures under $2,500 ($5,000 if your business has audited financials). 

With the way things are going now, first question I would ask is are you providing audited financial statements and who is your auditor.

What documentation will I need to provide to the IRS in the event there are any audits? 

Three are audits I dealing with right not that the IRS is saying hours before renting out do not count.