This baby boomer is smiling now but six hours earlier while sitting in the Internal Revenue office, a tear escaped down my cheek. I got all soft inside thinking about how much money I’d spent and lost that year following one of my dreams. Then I remembered: that what I did was not just dream. I went for it. And it does cost to be the boss.
On the 16th of September I received notice that I would be audited by the Internal Revenue Service on October 6th. That gave me barely 20 days to a) collect the paperwork I had used as a basis for preparing my return in 2010, b) organize my thinking so that I could understand where my head was in 2010 when I submitted my return, then c) prepare to explain and document my explanation to the tax examiner. I did not consider taking an attorney although for some this should be considered as a real option.
But as I said, I decide against this. I had large expenses this particular year to be audited; but there is nothing especially convoluted or tricky. I prepared these taxes myself, so I figured I would be the best person to explain my nonsense. BUT I was livid. I am a self directed baby boomer trying to make my way in the world. There are people with real money and more interesting expenses who are frankly more deserving of this attention.
Once I accept my reality, I know I’d better get started preparing for this day. Here are my tips for efficient preparation.
1. Panic then forget about it
For example I have $4,000 in repairs listed. This is what I am looking for on a particular schedule. This limits my search to a rental property.
5. Organize the answer to each question given the documentation available on a piece of paper (your key)
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