Client is under IRS audit. IRS wants copies of canceled checks. The bank charges $7 per photo copy of canceled check. This will cost client about $1,000 for all the canceled check copies. Does cient have to pay for these checks? Will the IRS pay for it? Options?

Based on my experience, if there is a adequate alternative method of providing the same support, the IRS will accept such evidence. For example, if an electronic copy of the canceled check can be furnished at a cost savings, the electronic version of the check will usually be accepted. If the IRS does not cooperate, then you can get the Taxpayer Advocate involved, or if possibile, apply for a due process hearing.

The IRS will not pay for the evidence, unless you tell them to summons the records. This is where your attorney hat comes into play. The question you should ask your client and yourself is whether an IRS summons will create additional problems for your client?<br><br>Post edited by: steve, at: 2007/11/22 12:33