Hi folks,
I just received a letter of intent to audit. They want all my paperwork including tax returns and bank statements. Has anyone else been through this? Any and all advice will be appreciated.
L
Talk to a CPA ASAP. Or an attorney. What is the reason they give for the request to audit?
Did you see this?
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No! That’s terrible. I’m not too worried as I’m small potatoes and I’ve been jumping through all their hoops. Just hoping there’s someone else out there that’s been through it.
Hi
I would recommend filing the extension and wait to see how the Measure C vote on June 5 lands. I wouldn’t agree to this audit on my business if they are just going to eliminate my business a week later.
That sounds odd, I didn’t know a city could audit you. Are they interested in your Air income?
I presume they’re auditing to verify of the property is a short term rental or not and to see if any relevant city tourist taxes are due? The income might verify this.
In Palm Springs, we pay a Transit Occupancy Tax which is 11.5%. I was not part of the audit, but from what I know, the city originally requested information such as a copy of your federal tax return, as well as bank statements from over 200 randomly selected permit holders. Since the original audit request, it has been amended for, what I believe to be, overreach. The city has become a draconian nightmare of regulations. About every 2 months, you see a drop of about 300+ vacation rentals (including us shortly) who have just about had it with this experience and are voluntarily giving up on this city.