Hi
I received an audit letter from IRS requesting me to provide documentary evidence for my itemized deduction for 2013,2014 financial years.I filed my tax return as 1040 US resident(per advice from my tax company whose help i used.). Please let me know if being on H1B, whether my tax accountant do the right thing by filing my return as a US resident? I have been continuously in the US from August 2010 - December 2013. I had to visit India for 18 days from December 30th 2013 - January 20th 2014. I came back to the US on January 21st 2014.
The other documentary evidence requested was related to Business expenses mentioned in the scheduled itemized section for 2013 & 2014 tax years.
The amounts in question are about 14k for 2013 and 12k for 2014.
I do not have evidence to support the business expenses mentioned in my tax filing other than bank statements to show that i made transfers for my monthly expenses and phone bills. I never cared to take documentary evidence of my rental accommodations.I know that i made a stupid mistake of filing itemized deductions without thinking about consequences. What i am not sure is providing incomplete information to the IRS be a good idea? My employer has not agreeded to provide me any letter which says that they will reimburse business expenses. IRS has mentioned in the audit letter that without a business expense policy from my employer, they will disallow the itemized deductions for both the years in question.
In this situation, please let me know how best can i face this situation. If anyone faced a similar situation, please let me know. i just want to be mentally ready for what is in store for me.
I received an audit letter from IRS requesting me to provide documentary evidence for my itemized deduction for 2013,2014 financial years.I filed my tax return as 1040 US resident(per advice from my tax company whose help i used.). Please let me know if being on H1B, whether my tax accountant do the right thing by filing my return as a US resident? I have been continuously in the US from August 2010 - December 2013. I had to visit India for 18 days from December 30th 2013 - January 20th 2014. I came back to the US on January 21st 2014.
The other documentary evidence requested was related to Business expenses mentioned in the scheduled itemized section for 2013 & 2014 tax years.
The amounts in question are about 14k for 2013 and 12k for 2014.
I do not have evidence to support the business expenses mentioned in my tax filing other than bank statements to show that i made transfers for my monthly expenses and phone bills. I never cared to take documentary evidence of my rental accommodations.I know that i made a stupid mistake of filing itemized deductions without thinking about consequences. What i am not sure is providing incomplete information to the IRS be a good idea? My employer has not agreeded to provide me any letter which says that they will reimburse business expenses. IRS has mentioned in the audit letter that without a business expense policy from my employer, they will disallow the itemized deductions for both the years in question.
In this situation, please let me know how best can i face this situation. If anyone faced a similar situation, please let me know. i just want to be mentally ready for what is in store for me.
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