Tax audit help Please?

Question

Last year i my neice stayed with me and my mom for about 8 months so i claimed her on my taxes. I got audited and they wanted proof that she stayed with me well that is the problem considering the fact she did not change schools. Well since I did not have any proof she stayed with me i let the deadline on the letter pass. I recently learned that i could have sent in notorized letters from my mother and sister(my neices mother). is it to late to do anything because i received a letter saying i owe $3800?

Update:

No my sister did not claim her. Will they keep my return this year?

Tones · Accepted Answer

1.  You shouldn't have ignored the IRS.  They take that personally.
2.  A letter stating that she lived with you for 8 months.  Also, have a copy of her parent's tax return that indicates she wasn't claimed as a dependent on their tax return.
3.  If they were claimed by her parents, you will have to pay that $3,800 unless you can physically proved she lived there which will be difficult unless you have very good financial records.
4. If you have food receipts that prove your costs have gone up, that may help; also, if you can prove your water and energy bills went up during the time she lived there, that might help too.

tax_black_belt · Answer

No it is not too late.  Aquire the letter, and contact the service agent in the letter.  Send a copy of the letter, not the original, to the revenue agent.  You will continue to get letters for a short time asking for more money, but you can ignore them until you get a determination from the revenue agent.  The revenue agent will place a hold on the letters, but the computer takes a while to process them.

Judy · Answer

You can contact them, but by letting the deadline for response pass, you probably gave up some of your rights.

Good luck.

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Tax audit help Please?

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