In this case our client was faced with a proposed IRS audit adjustment of $412,000 of denied deductions, which would have resulted in over $126,000 of additional income tax owed and $38,000 of penalties and interest. The primary issues related to hobby loss exposure and substantiation. H&A advised client throughout the audit process. The IRS eventually reduced the assessment to a mere $436. This successful outcome was the result of a collaberative effort between the client, his accountant, and the H&A team. We want to thank everyone involved for their efforts.
If you would like help dealing with the IRS, please contact us at (404) 255-7400.