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nolanryan

Just wrapped up IRS audit triggered my MS

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Hi CB, I haven't been on in some time. Been busy and my credit has been in cruise control since I cleaned it up.

 

I did have the privilege of going through an audit with the IRS due to my ms activities and thought I would share and provide some information to the community as well as a word of caution.

 

I was audited for 2016 and later expanded to included 2015 as well. After running approximately 500k through my WF card, the IRS determined that I owed approximately $250,000 in back taxes plus penalties and interest. 

 

I'll fast forward to the end and let you know the IRS eventually adjusted the numbers and removed everything they tacked on.

 

My only saving grace was that at some point during my ms adventure, I decided it was a good idea to start holding on to everything. So while I was missing a few weeks, I had the majority of every gift card receipt, money order receipt, and deposit slip. I was advised that, had I not had that, the IRS would have had to designate every deposit as additional income.

 

Regardless, it was a major pain trying to get statements for banks and credit cards, when some where no longer open, and try to put it all back together to be able to show the IRS.

 

In the end, all is right in my world and everything ended up working out but I did want to caution anyone interested in ms. To each their own but just remember, there is always the possibility of the IRS getting involved.

 

NR

 

 

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13 hours ago, hegemony said:

wow. what an update :wave:

Can't tell if sarcasm. Hope everything has been going great for you Hegemony.

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8 hours ago, bigpoppa09 said:

Im surprised u were able to run that amount it was said WF wasn't M$ friendly.

Things might have changed. This was two years ago at this point.

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5 hours ago, cv91915 said:

Good lord.  Glad you made it out alive!!

Yeah me too. The whole thing was not pleasant. I really think I lucked out.

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Stores changing their policies in my area has basically pushed me out of this game.  I did save every VGC purchase receipt, MO purchase receipt and bank deposit ticket, so I'm happy to hear that having the documentation worked out for you.

 

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Thank you for reporting this. Do you suspect what may have triggered the audit?

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17 hours ago, nolanryan said:

My only saving grace was that at some point during my ms adventure, I decided it was a good idea to start holding on to everything. So while I was missing a few weeks, I had the majority of every gift card receipt, money order receipt, and deposit slip. I was advised that, had I not had that, the IRS would have had to designate every deposit as additional income.

 

Regardless, it was a major pain trying to get statements for banks and credit cards, when some where no longer open, and try to put it all back together to be able to show the IRS.

 

This should be solid guidance for ANYONE regardless of whether they are engaged in the practices of manufactured spending.  There is ZERO excuse NOT to have these sorts of statements already in a file folder.  Anyone that relies on the abilities to retrieve them online is just BEGGING for troubles.  It is one of the reasons I still insist on paper statements.  More than once, a paper statement or cardholder Agreement, in a file folder by my desk, from several years prior, has bailed me out...

 

We see all too frequently on these boards where people were being sued or had some other issue and had no idea what terms applied or when the last payment had been made precisely because they never kept statements.  If they had them, it would have resolved MANY of their problems...

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2 hours ago, get.randy said:

Stores changing their policies in my area has basically pushed me out of this game.  I did save every VGC purchase receipt, MO purchase receipt and bank deposit ticket, so I'm happy to hear that having the documentation worked out for you.

 

You should be good then.

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2 hours ago, mec said:

Thank you for reporting this. Do you suspect what may have triggered the audit?

I felt there is at least one person out there who could benefit from my post. I am not sure what exactly triggered it but my activity, along with anyone else who ms, must have been highly suspicious. I had two or three bank account shut downs over this period of time coupled with daily deposits of money orders in the sum of $1000's of dollars each deposit. 

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3 hours ago, nolanryan said:

Can't tell if sarcasm. Hope everything has been going great for you Hegemony.

not sarcasm, just am amazing story. glad you survived mostly intact.

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