Re: IRS Audit
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To be ready for an audit, the best and really only thing you can do is to keep good documentation...Again, the IRS only really examines 1 out of every 50 returns (they don't have the time/manpower to check every return) and an even smaller number of those are audited. MAKE SURE YOU FILL OUT A FORM 1040, AND THE SCHEDULE C ATTACHMENT IF YOU HAVE GAMBLING WINNINGS.
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Good post. Some thoughts I'd like to add:
1) The IRS has been increasing the number of auditors over the years. As routine processing has become increasingly automated, people in those areas have been transferred and retrained. So expect more future audits.
2) Receipts, printouts, statements, excel spreadsheets you create will help you.
3) Any new "big" activity will eventually draw audit crosshairs. I was audited in '02 for '99 stock trades. Passed with flying colors. Some of you will eventualy be invited to stop into your local IRS field office for your '02-'04 online poker activity, assuming you reported. And if you didn't and they have some kind of flag... [img]/images/graemlins/blush.gif[/img]
4) Schedule C is for those who can make a basis for professional (full-time) gambling status. If you can't then you will use Schedule A. Make sure you know what you are doing regarding which Schedule to use.
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