Audit for Travel Nurse

[ryanstum15]

Let's say I've worked 48 weeks as a travel nurse this year and received a lodging per diem every week. If the IRS audits me, do I need to produce all 48 weeks worth of lodging receipts, or will a couple weeks worth do or what do they usually ask for? I am aware that travel nurses aren't usually audited as we wouldn't produce a very big amount for the IRS to gain from us, but I just wanted to be sure just in case.

[NedRN]

I would doubt they want that level of documentation (it is unlikely I think that they would even ask), but the person to ask is TravelTax who has been there in a number of traveler audits. Anyone else is also just guessing or supplying a single anecdote.

[VersatileRN]

You're stressing over nothing. You have better chances of being struck by lightning, than being audited by the IRS. :) HAVE FUN! lol

[NedRN]

There are a lot of tax guys that make a good living doing audit defense, including travelers.

Your math is way off too. The odds of an audit in our tax bracket is one percent annually (possibly higher as the IRS is targeting our industry). The chances of a lightning strike in any given year is one in 700,000. I'll let you figure out the odds of one versus the other but it's huge.

[VersatileRN]

Yes... I exaggerated. 1% ..... still great odds! lol

[NedRN]

Yes... I exaggerated. 1% ..... still great odds! lol

If the risk reward was no audit versus 1% chance of 10 years in jail for tax fraud, or $170,000 back taxes, interest, and penalties: which would you do? Not worth it for me. Better not to mess with the IRS, even if the chance of audit was less (and I suspect it is more).

[VersatileRN]

I totally agree with you Ned. I've learned a lot from you reading your posts. I actually do everything by the book. I'm gonna tell you though.... I've met a ton of travelers who do everything they're technically not supposed to do. Almost everyone I've met does the opposite of what you recommend. They don't care. They do make a lot of money. None of them have ever been audited. I've never met a travel RN who's been audited doing all the wrong stuff tax-wize. Anyway.... just saying. lol. But you're right about what you post. I suppose they're confident their odds of getting away with it are pretty good. ������

[NedRN]

So let's say one out of a hundred travelers gets audited every year. With around 30,000 nurse travelers, that's around 300 a year. But pick a number. Ever see one that admits it? Well, I think I've seen three altogether on social media over the last 15 years. Where are the rest? It's damn embarrassing, so very few admit to it.

How many travelers who have been terminated for being incompetent admit it? I've not seen one (other than reading between the lines). No one wants to say they were dinged big by the IRS.

Stuff is skewed on social media. It would be interesting to ask TravelTax how of many traveler audits he knows personally (actually few of them will be his clients before an audit because he is so straight he doesn't take travelers who won't do things right).

But you are certainly right that many travelers skirt the law, a lot of them with prodding by recruiters, and the vast majority of them do not get caught. But in my opinion, they don't have the right perspective on the risk/reward ratio.

[VersatileRN]

GOTCHA.