Quote:
Originally Posted by Dvae
Only people that need a reality check is big government types who think they're above the law.
If you can't prove it, it didn't happen. Isn't that the way it works?
I go before the IRS auditor:
I plead the fifth.
My documents are subpoenaed and I ignore it. I say I didn't understand the request I'll bring them next time.
My hard drive crashes and solves all my problems.
Then I ask the auditor what he's going to do to me and he says nothing.
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I don't know about the US tax system, but here in Sweden they would make an educated guess of your income based on expected living cost, bank statements, traceable spending and investments. If your declared income was less than their estimate they would tax the difference with about 50% and hit you with an additional 30% punitive fee for a total of about 80% in fees and taxes. If you appeal you would have to prove why you have or spent more money than you declared.
I had an audit a couple of years ago, but they were really nice an said my papers where in good order. Only thing they complained about was that I was spending too much money on monitors.....