SURVIVING A business audit may be hard for those who do not make use of the right tactics. Below are some of the best ways to survive a business tax audit.
At any time you are going through an audit, make sure that you provide them with a guarantee that all of your earnings, exemptions, deductions and debts are incorporated in your business account.
Delaying your business audit can be a good way as well. Many companies have found success by trying to postpone it by asking for additional amounts of time so as to have their accounts prepared well.
If you can, try to make sure that the auditors do not come to carry out their task at your home or office. Alternatively, go to their offices and ensure the specialists are involved in the audit of your business. In case they request to perform the auditing procedure at your premises, be sure to get in touch with a professional tax expert or adviser in order to gain a better understanding of what you need to do in the course of their audit. You can also tell them that some of your documents like receipts are missing (if they actually are) as this will mean you'll be provided with plenty of time to get your document records in order.
You should not expose yourself to risks by adjusting the tax amount that should be given. Alternatively, consider negotiating in case your reports have some pertinent issues.
At any time you need an audit at your premises, be sure to avoid providing the auditors with a lot of unnecessary information. Concentrate on answering only the questions that are asked. Also, avoid explaining a lot of details that arise in your business accounts or records. Be sure to carry the necessary documents at the right time. This will ensure only the existing reports are taken into account by the auditors. Don't carry previous years’ records or any other information unless when asked to and it's within the notice of your audit.
Get more information from any relevant IRS manuals and business tax publications in case you don't understand anything regarding tax laws. In case you don't get answers to your concerns, be sure to contact a tax consultant or any other professional who is well versed with the tax law.
Be sure to gain an understanding of your personal rights. The law states that if a tax payer is not content with a tax audit, they can always ask for more time in order to seek the assistance of a professional.
It is important to bear in mind that you have enough time. The IRS is supposed to finish your personal audit within a period of three years with the exception of those cases that have a fraudulent tax report.
Once you obtain the report following your audit, make sure that you get in touch with the auditor in case you have any concern regarding it. Consider negotiating with them by talking about relevant issues. In case you’re still not satisfied with the outcomes, you can consider lodging an appeal.