Why doesn't the IRS audit for the current year versus going back four years? The IRS audited me in 2008 for incorrect taxes beginning in 2004? Then they tacked on penalties and interest for four years that cost me hundred's of dollars back to that year. They were obviously late doing the 2004, waiting until 2008. why should I have to pay interest and penalties because they are behind in auditing people? To me, this constitutes a "set-up to fail" policy, that adds hundreds of dollars to my new tax bill. Especially, if I do not come up with some very yellowed receipts that I might or might not find in the bottom of some box that is barely readable in the basement or attic of my house to copy and send to them.
God forbid, we accidently threw away these receipts from four years ago, if house cleaning or by some other misfortune. Wonder what the IRS does to victums of floods and fires who lose their receipts? In addition, according to the television news the nominee for Obama's Treasury Secretary position happens to owe back taxes in the amount of $34,000. Whats up with that? Why don't they audit him? He gave the congress a very sincere apology and will probably be forgiven after he finally pays them. His deeply sincere apology for the oversight was surely accepted with a mere slap on the hand. He can certainly afford an attorney or a CPA to do his taxes - not like us who are barely scraping by on retirement pay. To me, it just isn't right for folks who are retired to be penalized so much - for not having receipts to prove payment of bills. I had to get the pharmacist to sign a printout of medications for diabetes, operations, chronic asthm, etc., and then I had to fight with the IRS to get them to accept the listing. Donations are another item I'm hot about. The dishes I gave away to a needy family on the recycle network for free doesn't count unless I got a signed receipt or signature from them. What's up with that?
Keep the faith.