State Specific Question About: ARKANSAS (AR)

A while ago a senate farm bill passed and included in it was an IRS ability to go back 20 years or more when doing an audit.

I had an apartment buildings that I rented without garages. Since the garages were long the rear alley way, I rented them out to non-tenants. One garage tenant I ended up evicting for non-payment of rent. He in turn reported to the IRS that for the 8 years I rented him that garage, I pocked the rent, paid in cash each month. So the IRS demanded I show up to a audit and brought with me all records to all rentals. I showed up to the IRS audit with a picture of my double car garage filed with over 100 boxes of records. I told them I would not participate in a scavenger hunt. They would have to tell me which property and years in questions.

The IRS was stupid because I listed the garage rents as Royalty and the apartment rents under Income/Rents. I showed the agents all of my paper receipts handout out to all tenants paying in cash over my 25 years as a landlord at that time.

This brings up a very interesting point for all. I hesitate to throw away anything and this is why (what Robert said).

I had a man call me this week at 7:27 a.m. (I documented because I thought it was early for a real federal investigator). He identified himself and questioned me about one of our tenants. I was reluctant to answer and I told him my concern in this day and age of "scammers". He proceeded to advise me that he could show up on my doorstep & show me his badge but was trying to be less intrusive. (Gee, thanks)

It is not unusual for social security to call & verify tenancy but this guy mentioned he was from the "Inspector General's office. Part of me wanted to co-operate as to avoid a conflict with the government but certainly a part of me did not want to be giving out tenant info.

I think this couple has been on & off again, but it's none of my business and I just told him they pay their rent, and I'm not even friends with them on FB so I don't know who lives there or not for certain. Weird.....

When parents have children that are drawing assistance, or social security disability, agencies often check to verify address, lease.

This child has type 1 juvenile diabetes, so I knew he was on some kind of disability assistance from what the mother had told me.

Jason, I admire your "courage". I didn't want to "tick" off Uncle Sam & find myself in his cross hairs. So, I attempted to cooperate without really saying anything one way or the other.

You never know when someone might want to make an example of you.