I have a client that is a non-filer since a divorce in 2012. Makes good money, just checked out when it came to doing taxes. Currently under examination – 2014 SFR, 2017 – engaged with client and RA. RA has summons for bank records and income records from vendors for 2013, 15, 16, 18, 19. RA is experienced. Did a FOIA request for all of her records to gain better understanding to what depth she was reconstructing–ie, reviewing bank deposits for cash backs vs just accepting bank deposits from bank statements. I have 2017 accounting done and a tax return.
Curious if anyone has advice on this in depth type of exam situation?
Just wanted to follow up on this to get some feedback from all of you. So records obtained via FOIA request. What is the best, most expeditious way to reconstruct expenses from FOIA info? Mileage is clients best overall deduction, but no logs and creating may prove daunting as we will need to spend the time finding customer contracts (if any) as a source of support. Any “standards” we can use to expedite this case toward a conclusive number? Your feedback is appreciated.