The purpose for the county treasurer calling for an audit is because the taxes owed (section A1) is more the value of the property and this gives him permission to sell the property at the auction for 2/3 of the value which is lower than the amount of the taxes which are due.

Unless you get audited and there is no adequate documention, IRS might give you trouble. 

If they happen to audit you, they'd quickly learn of any obfuscation and that wouldn't be good for you.Again, good for you for taking the plunge.

No one seems to question that the CFPB can audit any of my loan files at any time without probable cause or a warrant (overall I accept this and think it is a good thing), but that's very different than your or my personal car or home. 

If/when I ever turn over my properties to a professional PM I'd expect monthly/quarterly audits of every property along with photos of completed work (as I require for all contractors currently). 

Both of those structures involve some planning and involve different levels of expense and experience (brokers license, annual reporting, audits, etc.). 

You will not be able to rely on that phone call with the IRS agent if you were to get audited.

This is basically for audit purposes if there is a complaint filed. 

.**** this is not covered in the Act, it is an audit trail as there are record retention requirements and an RMLO should keep records of anything s/he puts their seal to.In the note business, any investor who buys a note secured by a covered property can get hung on the discount later on as such notes filter into the market, I suggest you not buy a note concerning a covered property without a seal, either showing compliance of origination or a statement of exemption. :)   

He was was audited and investigated by HUD.