I hope it doesn't happen but I can't waste time trying to audit and use 20/20 hindsight to guess what a PM should have paid.

Also, expenses against zero income is an audit flag.If you do decide to claim some expenses in 2017, then a careful planning of the rehab is due.

The IRS will appreciate it when they audit you.

Check out the book on Tax Strategies in the bookstore and you'll learn some tricks.I had a CPA that was good at filing taxes (we survived an audit) but she wasn't good at giving me advice on how to reduce my taxes.

We did a video a while back based upon a bunch of live calls that we audited - we found what Brian said, these people are calling to talk to a person, not a machine, and they will often abandon the call when presented with a machine.If you have to use voicemail, use it sparingly and call people right back.  

And Thanks @Bill Gulley and @Jay Hinrichs Bills comment about REGs auditing made me think about my process.

Bottom line if they are paid anything over $600 you better 1099 them otherwise you will suffer in an audit.

There is also a lot of liability and risk of audit if someone files a complaint against you. 

Kristine Marie PoeI'd say you're right, except that closed transactions show up in audits after closing, it's not the closing agent responsible for such matters but the selling broker.......in their absence, the seller.

I personally love representing TT clients in audits.