Topic: Tax

Subject: IRS request for a Quickbooks backup file
Jeff Uecker
Member: 2012
Posts:2
Submitted on 09-19-12 2:42 pm
Message:
I prepare tax returns for a S Corp. The IRS is reviewing the 2010 tax year. As part of the data request, they have specifically requested the actual Quickbooks backup file (qbb). As near as I can tell, there is no way to only back up 2010 activity so if we provide the file, the IRS will have all the activity since the company started plus any activity in 2011 and 2012. I am concerned this could lead them to examining activity outside the audit period. Has anyone had to deal with this issue?

 
1  
Replies
Jim Collins
Member: 2011
Posts: 4

Subject: Re:IRS request for a Quickbooks backup file

Submitted on 10-05-12 1:42 pm.
Message:
Jeff, I have not dealt with this issue specifically; however, this might be helpful:

1. You do not have to prepare any special documents or compile any special records for the IRS as a consequence of an audit. The only data to which they are entitled is documentation you have in your files and from which you prepared your tax returns. (You CAN provide any extra data you wish, but you're not REQUIRED to.)

2. Unless there's a waiver outstanding, any year closed by the statute of limitations is closed, assuming there was no fraud. You might have to adjust some carryforward numbers (e.g., if your depreciation was improperly calculated.)

Your question probably should go to a forum on QuickBooks and make a technical inquiry there. I find it hard to believe you can't provide single year data without providing ITD data.
 
Jeff Uecker
Member: 2012
Posts: 2

Subject: Re:IRS request for a Quickbooks backup file

Submitted on 10-13-12 2:51 pm.
Message:
Jim, thanks for your insight. I did find a utility within Quickbooks that eliminates detail as of a specific date and replaces it with a monthly summary. I ended up running the utility for December 31st 2009 and sent them a file that only had detailed 2010 and the first few months of 2011 (I had a 2010 year-end backup). Hopefully, the audit will go well and this will be the end of it.
 
Jim Santiago
Member: 2019
Posts:

Subject: Re:IRS request for a Quickbooks backup file

Submitted on 12-18-19 3:31 pm.
Message:

Hi Jeff,


 


I have run into this situation with the State of New Jersey regarding sales and use tax audits.  Sometimes it is better just to give them the file and get rid of them, if you know what I mean.


You need a QB devolper and they can make the file for you.  Susan can help you.  I have worked with her over the past 9 years and she is solid.  


Susan Cook - 508-922-7994, susan@quickbooksability.com


If she does not respond you can reach Wes Behr at ability consulting 866-992-2454


Hope this helps,


Jim Santiago


 


 

 
1  

OUR SPONSORS:

cfo