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Best Business Practices for Photographers, Third Edition, 3rd Edition by John Harrington

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Chapter 26

Insights into an IRS Audit

If you are reading this chapter, it is for one of three reasons: 1) you are about to be audited (or you are currently being audited), and you need to know more; 2) you want to avoid being audited and are looking for insights into how to do that; or 3) you want to take some odd pleasure in my audit experience.

A few years back, an unassuming letter arrived in the mail on November 18. It arrived in duplicate—one for me, one for my then wife. It read:

“Your federal return for the period(s) shown above has been selected for examination.”

This baker’s dozen of words was terrifying for me. Not, I hasten to add, because I had anything to hide, but because of the amount of time I expected would be involved in preparing ...

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