They have much stricter reporting requirements (audited financials and semi annual reports), as well as a much lower barrier cost of entry.

If the proper reports and documentation are not completed, you run the risk of failing an IRS audit and the cost segregation not being honored.

I've heard of audit cases from the California Dept of RE to ensure PM's, but yeah, the insurance seems steep so I wouldn't be surprised if they didn't have insurance.All that aside, ridiculous that they're suing both.

When properly established and utilized, a self-directed IRA or Solo 401(k) should not have any issues in the event of an IRS audit.  

I think that's going to be a tough sell to the IRS at audit.As for documentation - I've not yet represented anyone at audit where the IRS questioned the date placed in service.

So, you really need to do your due diligence in finding a mortgage broker/RMLO.Get references, then see if those references have any relationship with the LO,Look to their last state audit and compliance exam, if they never had a compliance exam, move on.Do they have the net worth to buy, at par, any loan they do that is non-compliant?

I was always impartial to having them.

Then, when you get audited you find out that the problem is an underlying matter that you failed to disclose (not knowing) when you got assistance and the IRS has no liability in giving you that assistance.

Not having your Operating Agreement done correctly could be disastrous if ever sued or audited.

They are $300 a year (at least in my state) and he also noted that you are more likely to be audited.