[soldier2020]

Proving expenses
Lost most tax deduction reciepts during a flood jan 08
I got airs audit notice aug08 for 2006
How do I reconstruct my documentation
I also needc to know what to look for in a tax representative ( attorny , cpa, or former IRS )
Wouldit be necesssary to get a forensic accountant to help
I am a retired army optometrist with a small clinic
My wife is a nurse who is loco tenens contractor
We need advice

[MukatA]

Use credit card statements, bank statements, and other statements to reconstruct your expenses.
This is from IRS publication 17: Your Individual Income Tax.
"What If I Have Incomplete Records?
If you do not have complete records to prove an element of an expense, then you must prove the element with:
*Your own written or oral statement, containing specific information about the element, and
*Other supporting evidence that is sufficient to establish the element.

Destroyed records.
If you cannot produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. Reasons beyond your control include fire, flood, and other casualty."
Go through your bank statements, canceled checks, credit card statements and other records to collect as much information as you can. Take a copy of police report with you.

[AtlantaTaxExpert]

All of what MukatA says is good and accurate advice.

If none of these options are available to you, you CAN reconstruct using just your memory. If the expenses are logical and reasonable, you may be surprised about how the IRS will accept expense claims that have no proof or receipts.

As for your representative, I recommend that you use an enrolled agent, who is a tax specialist licensed by an IRS. They are generally much cheaper than a CPA or tax attorney, but a cut above your local tax preparer.