How to Handle a Business Tax Audit
Unfortunately, tax misconceptions abound. The rumors are not as bad as you may have heard, especially if you follow the aforementioned process.
If not, stay calm, many unorganized and unprepared businesses have faced a tax audit before. One helpful tid bid: make sure you are clear, transparent and open with every question posed by the auditing team. It will make your life so much easier. In short, be ready to give the auditors all the documents they need so they can compare what you reported with reality.
Sometimes tax audits are 100% unavoidable, but there are a few precautionary measures you can implement to avoid an IRS audit. If you are the beneficiary of such a visit from your friendly IRS CPA, at least you will be prepared and confident when they arrive.
What are some other tips that entrepreneurs can use when faced with the possibility of a business tax audit? Let me know in the comments section below.
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Photo Credit: Zara
Will Clive is a marketing manager for SmallBusinessTaxes.com. His expertise ranges across all things tax, but he especially loves working with entrepreneurs who are passionate about what they do. He resides in Utah.
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