A few years ago, I had to submit, not to a full-blown audit, but
an "interview" at the Las Vegas Grand Inquisitor's, er, IRS office,
because I had a giant pile of W-2G's, but I had filed a Schedule C
as "professional gambler" and had itemized, thus showing only a
$22,000 profit for the year, which was accurate....
doesn't give a rat's rectum about truth or accuracy.
It soon became evident that the purpose of the "interview" was to
try to trip me up, to catch me out in some misstatement or error,
and to use that as leverage to accuse me of some horrible wrongdoing
(and sock me with a gigantic tax bill). He tried to stay on the
offensive, BUT I WOULDN'T LET HIM. I kept saying that I was engaged
in legitimate activities, had complied with the law, and had kept
accurate records; that he had NO cause for suspicion other than that
others in my position had NOT complied with tax law; and that if he
persisted in what I considered harrassment, I would take my case to
federal tax court.
After a couple of hours of this crap, the jaws of the crocodile
opened, and I swam free. I am convinced that it was only my
aggressive defense of my rights and my position that saved me from
much further torture.
You have to realize, going in, that these people are individual
careerists who are rewarded when they find "evildoers". If they
catch and fillet you, that's a feather in their cap, and a road to
possible promotion. The only counterforce that you can offer is the
same one we all learned to use against the schoolyard bully: fight
back; make it not worth their while to harass you; make them seek
easier prey.
My father lost SEVEN MILLION DOLLARS, (yes, $7,000,000) to the IRS
because he did NOT fight back. At least I learned my lesson from
seeing that happen--he lost virtually everything to those swine.
I am painting this as an adversary situation, because that's what it
is---and that's what it will be for YOU. Insist going in, keep on
insisting, and make it clear that you will continue to insist on
your rights, even if they refuse to acknowledge those rights.
Otherwise, they'll have you for breakfast.
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