It is that time of year - you breathe a sigh or relief, your taxes are done...
Or are they?

How will I know if the IRS is auditing my business?

You will usually receive a notice in the mail. This is triggered when there is an issue with your return or when your return is selected for an audit. The IRS does not typically call you personally on the phone. If this happens, you are likely getting scammed and should contact your local IRS office (or Safe Harbor) immediately. Do not provide personal information during one of these calls – instead, refer them to your tax attorney or representative.

What happens when the IRS audits my business?

The IRS will usually outline the audit process in their letter. The audit itself is usually conducted by mail, phone, or email. You won’t typically meet or see a Revenue Officer from the IRS in-person. Occasionally, the IRS will conduct a field audit, and this is where someone will come visit your home or business. If this is the case, you will certainly want to have representation on site to make sure the audit is managed carefully and thoroughly.

How can I resolve an IRS audit?

Most audits are triggered by a mismatch between the information you submitted on your return and the information submitted by your employer, bank, or vendors. Because this is an automatic, computer generated trigger, there are often errors. A clarification and explanation will often result in clearing up the amount the IRS says you owe. This is a relatively easy issue to resolve.

In other cases, the resolution may not be as easy. An experienced tax attorney or CPA can review your notice and advise you of the proper next steps. The role of a tax attorney or tax resolution specialist is to protect your interest.

If you are faced with an audit notice, we are here to help.

Categories: Taxes

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