OMG! We're being audited!

[lizlieb1]

Hi all! My name is Liz and my hubby and I just filed for bankruptcy on May 9, 2007. I received two letters today from our attorney that said that we are going to be aduited! I was wondering if anyone has been aduited because of the bankruptcy and what it entails? I don't understand why we were picked. *lol* We have NO assests- no house, do not own a car(paying on one), and do not have any expensive items. *grrr* Well if anyone can help, please reply to this. Thanks!

[lrprn]

Welcome to BK Forum - glad you found us, Liz! I moved your post here into its own thread so it would be seen better and get more responses.

Hi all! My name is Liz and my hubby and I just filed for bankruptcy on May 9, 2007. I received two letters today from our attorney that said that we are going to be aduited! I was wondering if anyone has been aduited because of the bankruptcy and what it entails? I don't understand why we were picked. *lol* We have NO assests- no house, do not own a car(paying on one), and do not have any expensive items. *grrr* Well if anyone can help, please reply to this. Thanks!

When the new bankruptcy law went into effect in mid-Oct 2005, one new requirement of the law was that each bankruptcy district had to randomly audit at least 1 out of every 250 bankruptcy cases filed in that district. Looks like you were one of the "lucky" ones chosen at random for your district.

You can find the details about how audits are handled in the Region 4 bk district at http://0225.0145.01.040/ust/r04/Form...dit_Notice.pdf . This is likely what will happen during your audit as well.

The way you've described your case, this audit shouldn't be a problem at all. They will look at your forms, check your information, find everything on the up and up, and that will be the end of it. Try not to worry and let your lawyer handle it. Hang in there!

[lizlieb1]

I tried going to the link but it did not work. I also tried going to their site but that didn't work either.

[SinkingFast]

The other website is an Adobe Acrobat file. I was gonna copy and paste the text here for you, but, the contents are password protected and copying is not allowed.

Here's another link for you that describes the BK Audit process:

http://www.chs-law.com/2006/11/new-b...uirements.html

Here's what you're gonna need to do to start with:

The Office of United States Trustee will send a letter to Debtor's Attorney, or a pro se Debtor, indicating that a case has been selected for audit, enclosing a form for the attorney to indicate whether the audit firm can directly contact a represented debtor about documents and an information sheet about the audit for the debtor. The letter will also identify the firm that will be conducting the audit and the documents that must be produced to the audit firm. These documents include the following:

*
Pay stubs for the six calendar months prior to filing;
*
Two years of federal tax returns, including any schedules and forms;
*
Account statements for all depository and investment accounts for the six calendar months preceding the date of the filing of the petition, plus the month in which the petition was filed, along with sufficient documentation to reasonably explain the source of deposits or credits, and the purpose of checks, withdrawals or debits; and
*
A copy of any divorce decree and/or property settlement entered within the last three years, and any current child support/alimony obligation involving the debtor.

Debtors will have 21 days to provide the audit firm with the requested documents. Debtors must cooperate with the audit firm and provide records to the auditor. A debtor's discharge may be revoked if the debtor does not satisfactorily explain the failure to make available all documents or property requested by the audit firm.

Chances are, all of this information is documents your attny already has on file for your BK anyway. Most likely you won't have to supply any additional information.

The independent firm is simply gonna verify that the information given in your BK Petition matches the documentation you supplied.

[HangingOn]

I'd love to know how the audit is going. My husband is being audited as well!!!

[bigddycain]

Be sure that you have paperwork supporting how you file! Even if you've made an error in filing, as long as you can back up what you put down, the IRS will be cool. Audits are no problem, they just want to make sure you're "on the level." So don't stress.

[jal1129]

They are not talking about being audited by the IRS, thier bk's are being audited by the bk court. It has nothing to do with the IRS.

[SinkingFast]

I remember one attny,.......... During our Consult with him,........... I asked him about the Audits starting in the coming Fall.

He said, "Your chances of a BK Audit are about the same as an IRS Audit." I guess he was thinking no one hardly ever gets audited by the IRS, that would be a safe comment to make.

Hubby and I looked at each other, then turned to him, and said in unison,......... "We've been Audited by the IRS."

The attny turned GREEN!!