IRS audits are complex and can be intimidating to small business owners when it comes to small business tax returns. Understanding the process can help you prepare and protect your business during an audit. Our experienced team of tax professionals at Krus Tax Law can help you navigate the process and ensure that your small business is protected. A tax audit attorney will work with you to identify any potential risks and help you develop a plan to protect your business during the audit process.
How To Protect Your Small Business During An IRS Audit
Understand The Process
The IRS audit process is a comprehensive review of your financial records and tax filings to ensure accuracy. During the audit, the IRS will request information about your income, expenses, deductions, and credits to verify that the information you reported is correct. It’s important to understand the process and the type of information the IRS will request from you.
Get Prepared And Be Proactive
Before the IRS arrives, it is important to make sure you have all the necessary documents and records available. Gather all financial statements, bank statements, and receipts that could pertain to the audit. This will help you provide the necessary information to the IRS, as well as give you a better understanding of the financials. Make sure to know your rights, as well as the IRS regulations.
During the audit, it is important to be proactive and cooperative. Answer the questions truthfully, and provide the documents and records that the IRS requests. Additionally, ask questions if there is anything you do not understand. This will help ensure that the audit runs smoothly and efficiently.
Follow IRS Instructions
Following instructions and responding to requests promptly is essential during IRS audits. It is important to be respectful and cooperative throughout the process, as failing to comply with the auditor’s requests can lead to penalties and other consequences.
Throughout the audit process, it’s important to document everything. Keep a record of all the documents and information you provided to the IRS and make copies for your own records. This will help you keep track of the audit process and ensure that all of your information is accurately represented.
Seek Professional Support
If you are facing an IRS audit, it is important to seek professional help from an experienced tax professional. A tax attorney or CPA can represent you during the audit and provide valuable advice and guidance on how to respond to questions and requests from the IRS auditor.
The most important thing to remember when faced with an IRS audit is to be prepared. By understanding the process and having all of the necessary records on hand, business owners can ensure that their audit goes as smoothly as possible. Contact our tax audit attorneys at Krus Tax Law to protect your business throughout your IRS audit.