Few things can send chills down the spine of a small to midsized business owner faster than hearing that they are going to be audited by the IRS. Audits are not uncommon, but they can be time consuming and costly if they are not handled properly. With the right preparation, however, an audit doesn’t have to be a huge deal. The following six steps will help ensure your business is ready for anything the IRS throws at it.
Don’t Panic
While nobody wants to be audited, it is important to remember that an audit is not the end of the world. Remember, the IRS audits thousands of individuals and businesses per year, and most of them go quite smoothly without any major trouble. The first thing you need to do is really look closely at the letter from the IRS. Many people mistakenly think they are being audited when the IRS is actually just looking for more information. You may be able to simply respond to the letter with the information they need, and the issue will be behind you.
Get Organized
If you are indeed being audited, you want to get as organized as possible. Gather together all of your tax documents, receipts, and other financial information into one place. This will allow you to quickly provide the IRS with what they need, when they ask for it. The easier you can make this process on the IRS, the easier it will be on you.
Contact Ser & Associates
You really don’t want to deal with the IRS on your own. Even small businesses need to take an audit very seriously, and that means hiring an experienced tax attorney to represent you with the IRS. You wouldn’t try to handle even a minor surgery on your own, so don’t make the mistake of trying to handle this tax issue without a professional. In addition to helping ensure everything goes smoothly, Ser & Associates will handle virtually all the work involved so you can focus on running your business.
Respond Quickly to Requests
An audit generally isn’t just a one time meeting with an IRS agent. They will typically request different documents or information, which you will need to submit. When you get a request for information, make sure you respond immediately. Almost everything the IRS does will have a deadline, and if you are late even once it can come with serious penalties.
Don’t Provide Information that is Not Requested
While the IRS will request a fair amount of information from you, there will be a lot that they don’t need. While it may seem like a good idea to provide them with all the tax and financial documents you have, this is actually a mistake. Giving the IRS more information than they require will only give them more opportunities to find problems. Supplying them with only the minimum amount of information is the best course of action.
Don’t be Afraid to Appeal
Once the IRS issues the results of the audit, don’t think that this has to be the end of the story. If you disagree with their findings, make sure to appeal them. The IRS is certainly fallible, and appealing can allow you to present more information, negotiate a compromise, or even go to court to get more favorable results.
Contact Us Today
Whether you’ve already been notified by the IRS that you’re getting audited, or you fear that it is coming, please don’t hesitate to contact Ser & Associates right away. We’ll set up a consultation to go over your situation, and see how we can help protect you and your business.
