# ovdp



## Arizona111 (Mar 25, 2014)

guys i will be joining the ovdp process
My question is that i have some business expense since i worked on 1099 and i don't think i have receipts for the past 6 years for all those expenses.

What do i do in this case? Should i forfeit those expenses and add it to my income? Some are telling me that do not matter you just send copy of return and amended return if they need more they will ask


If anyone knows please let me know
Thanks


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## Bevdeforges (Nov 16, 2007)

You only need the receipts if you get audited. So, depending on how it is that you know how much you spent, and how much that affects your back filings, do you feel lucky?
Cheers,
Bev


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## Arizona111 (Mar 25, 2014)

So Bev once i get clearance and file the amended return you are saying at that point they can ask for the recipts and if i said i don't have them they can just add that in the fines?
Thanks


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## Bevdeforges (Nov 16, 2007)

Arizona111 said:


> So Bev once i get clearance and file the amended return you are saying at that point they can ask for the recipts and if i said i don't have them they can just add that in the fines?
> Thanks


No, what I'm saying is that you file what you file - and if and when you are audited, then you will be expected to produce the receipts. If you don't get audited, then you got away with it.

They can (and probably will) disallow any expenses for which you can't produce receipts and that will obviously affect your audit results.
Cheers,
Bev


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## Arizona111 (Mar 25, 2014)

I dont understand? I am told the audit is only for Fbars its not that i don't have the receipts i do have the receipts but 6 years of receipts? Its kindda hard work.


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## Bevdeforges (Nov 16, 2007)

It's rare that FBARs would be audited unless your tax returns were also being subjected to audit for some reason.

But the point with the receipts is that, to take "business deductions" you are expected to keep proper and standard books of account for your business. Part of that obligation is that you maintain a file of the documents supporting your accounting entries, i.e. the receipts.
Cheers,
Bev


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## FilingLate (Mar 18, 2014)

@ Arizona I think I can answer this question
If they came audit whatever they will ask you for the receipt if you don't have the receipt they wont give you the deduction.

They can also deny any deduction
I would just try to write it all down expenses for example so in case if they came you will be somewhat prepared.


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## Arizona111 (Mar 25, 2014)

i was trying to gather all my receipts and i am almost their but it hit me what exactly is the statute of limitation.
I will be filing 6 years of fbar and 6 amended tax return will the statute of limitation in case of an audit be 3 years? 
From what i read for 2013 tax the statue will end in April 2016?


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## BBCWatcher (Dec 28, 2012)

It's a little bit complicated, but the slightly oversimplified answer is 6 years unless you file a "false or fraudulent" tax return, or none at all. Then there is no statute of limitations except perhaps your death. (Though some U.S. government agencies are finding apparently legal ways around that limitation if you have a child, as the Washington Post reported this week.)


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## FilingLate (Mar 18, 2014)

its 3 years audit 3 years to claim money from IRS and 6 years if you under reported income by 25% i think these are the statute of limitation.

So i think if their is an audit they can only go back 3 years unless they find an omitted income somewhere or if they can find you understated income
So for example you made 100k in 2008 (lets say 6 years ago) and only reported 75K they can audit you in this case.

BBC knows more then me i just looked online


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## BBCWatcher (Dec 28, 2012)

There is indeed a 3 year statute of limitations, but it has so many exceptions that you might as well simplify things to 6 years or life. To simplify that further, it's 6 years for an honest mistake (even a big one) and life if you're an a-hole.


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## Bevdeforges (Nov 16, 2007)

Officially, there is no statute of limitations on unreported income. So, if you neglected to report the zillions you made from those offshore accounts or dodgy investments in a money laundering business, you're potentially liable your entire life.

One quick note on the Washington Post article, though - they are going after the children of those who received excess Social Security payments to reclaim those overpayments - in some cases years ago. And they only seem to be able to do this if the children have refunds due them. I think for any of this to happen, you would have had to have received non-retirement Social Security benefits in your family, say, survivor benefits. This doesn't involve taxes, just the Social Security benefits.

This doesn't really affect most expats, as many/most expats don't generally have refunds due them if they are working abroad.
Cheers,
Bev


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## FilingLate (Mar 18, 2014)

Bevdeforges said:


> Officially, there is no statute of limitations on unreported income. So, if you neglected to report the zillions you made from those offshore accounts or dodgy investments in a money laundering business, you're potentially liable your entire life.
> 
> One quick note on the Washington Post article, though - they are going after the children of those who received excess Social Security payments to reclaim those overpayments - in some cases years ago. And they only seem to be able to do this if the children have refunds due them. I think for any of this to happen, you would have had to have received non-retirement Social Security benefits in your family, say, survivor benefits. This doesn't involve taxes, just the Social Security benefits.
> 
> ...




OP in this case was just wondering the SOL I think he needs to know how far back if their is an audit that audit will go. 
I think its 3 years and that's it
OP i think if you have 2013 Taxes the SOL starts from 2014 April ends in 2017 April
Maybe someone else can add something
Thanks


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## BBCWatcher (Dec 28, 2012)

No, that's too simple. Audits are possible without statutes of limitation in certain circumstances, as noted.


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