vt tax claims excessive expenses and sales dont match up

Question

After numerous requests, they knew of no and misspoke when asks which expenses were excessive.  They claim under reporting of income, when asked to be specific never spelled it out. I used GoDaddy acct which went out of business, dont have cash receipts, statements, documentation stored in barn were flooded during the last storm.   
 
All the documents received from tax people  show i owe money.  They did not include the numerous requests for more specific information requested.  Im a reseller on ebay, i purchase at 50percent, sell at about 75percent, ebay charges 15percent, business rent, auto, utilities, and expenses,  there is  little profit.   
 
Last few years, i have not been buying goods, ive been selling my own personal items.  How do i make them understand that some of the sales were from my personal collection, now that I'm retired and living off social security, i volunteer at alot of venues, i own 2012 honda, xwife got the rest, what do you suggest? Extension request?

James L. Arrasmith · Answer

You should start by organizing any available records, such as bank statements or digital receipts, to demonstrate your income and expenses. Explain to the tax authorities that recent sales were from your personal collection, not part of your business inventory. Make it clear that since you’ve retired and your business activities have significantly decreased, your financial situation has changed. 
 
Provide a detailed statement of your current finances, including your reliance on Social Security, the ownership of your 2012 Honda, and any other relevant information about your assets and liabilities. Highlight that you no longer have significant business operations and that some documents were lost due to circumstances like the flood. 
 
Request an extension to give you more time to gather and present the necessary information. Communicate your willingness to cooperate and resolve the matter, and consider seeking assistance from a tax professional to help present your case effectively. This approach can help clarify your situation and potentially reduce any owed amounts.

Q: vt tax claims excessive expenses and sales dont match up