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Warning: demanding 3 Years of Bank Statements

Started by overtime_forever_26 · Mar 4, 2026 · 9 replies
For informational purposes only. This is not legal advice.
IA
overtime_forever_26OP

Looking for advice on this situation. IRS Auditing My Cash Business - Demanding 3 Years of Bank Statements Any guidance would be greatly appreciated.

Details: I'm in a situation where I need to understand my legal options. Has anyone dealt with something similar?

TE
clause_for_alarm_14Attorney

The IRS has been increasing enforcement in this area significantly. What you could get away with 5 years ago is being caught now. When in doubt, report conservatively and consult a CPA.

FC
hearsay_harry_23

The IRS has been increasing enforcement in this area significantly. What you could get away with 5 years ago is being caught now. When in doubt, report conservatively and consult a CPA.

FC
hearsay_harry_23

State tax nexus rules are a mess right now with remote work. The general rule is: you owe tax to every state where you work, even temporarily. But practical enforcement varies widely.

CL
jurys_out_1Attorney

Keep meticulous records. The IRS loves to deny deductions for lack of substantiation. A $50 expense tracking app saves thousands in lost deductions during an audit.

RG
jenny_2024_12

Keep meticulous records. The IRS loves to deny deductions for lack of substantiation. A $50 expense tracking app saves thousands in lost deductions during an audit.

GW
CounselK_25

The IRS has been increasing enforcement in this area significantly. What you could get away with 5 years ago is being caught now. When in doubt, report conservatively and consult a CPA.

CL
jurys_out_1Attorney

State tax nexus rules are a mess right now with remote work. The general rule is: you owe tax to every state where you work, even temporarily. But practical enforcement varies widely.

AT
NotaryJane_17

The IRS has been increasing enforcement in this area significantly. What you could get away with 5 years ago is being caught now. When in doubt, report conservatively and consult a CPA.

IA
overtime_forever_26OP

Update: Thanks everyone for the guidance. I consulted with an attorney and we're moving forward. The advice here helped me understand what questions to ask and what to expect. Will update when there's a resolution.