What to do if Your Company Gets Selected for a Business Audit
After you have filed your business’s 2017 corporate tax return and paid the calculated taxes, you may have thought about the prospect of being audited. You don’t need to worry too much because, according to the IRS, only 57,000 businesses (0.57%) were audited in the fiscal year 2014.
Why You May be Picked for a Business Audit
The IRS conducts an audit to confirm that financial information has been reported without errors and that the taxes are correct. If you are unlucky and picked for a business audit, it’s probably the result of random selection and not because you have done something wrong. If you are audited, the following are steps you should take:
Treat the business audit as a component of doing business and proceed in a professional manner with your tax advisor.
Often IRS business audits are conducted by mail. However, don’t put off opening mail from the IRS because you’re afraid of bad news.
Provide the Requested Information
Comply with requests for information and/or documents before the IRS deadline. If you need help, call the IRS phone number contained in the audit instructions or visit your local IRS Taxpayer Assistance Center.
Review the IRS Decision
The business audit process is over if the IRS accepts your tax return as filed. If the IRS proposes changes, you can choose to agree or disagree with what the IRS is proposing. If you are in disagreement, you have the right to file a protest by the IRS deadline. Click on this link for more information.
Taxpayer Bill of Rights
If you are audited, it’s important to realize that you have rights. In fact, a Taxpayer Bill of Rights has been adopted by the IRS. Click here to see what your rights are.
Clear Capital Group can’t help you with an IRS business audit. However, we can provide you with any working capital you may need. So, Whatever your business’s tax bracket, please contact us for more information.