The initial examination of taxicab drivers in the Los Angeles District was begun in connection with the examinations of two corporate taxicab companies. Approximately 650 taxi drivers were under examination during the years 1987 to 1989, with average adjustments of $8,000.00 per driver and 7 hours of investigation time per case. What Can I Expect From An Audit?
Prior to the actual audit, the IRS Audit will conduct a "Pre-Examination Analysis". The auditor will request the following documentation from you, and you will be required to provide it to the auditor.
- Personal Living Expenses
- Names And Addresses Of Taxi Drivers
- Monthly Waybills
- List Of Vehicles Owned By The Taxpayer
- IRP Transcript, Form 5346 and Form 8300 Checksheet
- Books And Records
If you don't understand the importance of the above documents to the auditor, or don't understand exactly what information will be required, the answers will undoubtedly affect your tax liability and you could find yourself in trouble with the IRS. How can the IRS possibly understand the business of driving a taxi? They have done their research. Now, it's time to do yours! You can have the manual specifically written to assist the auditors of taxicab industry.
