Getting an IRS audit notice would probably induce stress for just about any small business owner. But if you find yourself in this situation, there are a few things to keep in mind that can make your life easier.
First, there are a lot of scams out there trying to trick individuals and businesses into thinking they are subjects of audits, when in fact they are not. The IRS will only notify you by mail of an impending audit, not by phone or text message or email. So, ensure that the notice is legitimate before anything else.
Next, understand that an audit is simply the IRS’ attempt to verify the information on your tax return is correct. While it’s certainly not as fun as a vacation at the beach, it can be navigated smoothly with the right guidance.
Also, remember that you have rights as a citizen and taxpayer, including the right to a clear explanation of communications from the IRS and the right to appeal IRS rulings.
That said, you will need to comply with IRS requests in a timely manner and you will need to produce relevant documents. Good record keeping is always a best practice, so do that now (if you aren’t already) so if you are ever audited, you’ll be able to quickly produce evidence proving the accuracy of your tax returns.
During the audit process, be polite and professional in all your interactions with IRS personnel. Remember, they are just doing their job, and they want to resolve the issue successfully and move on to the next case as quickly as they can.
Tax law can be complex, and an audit can be even more so. Each situation is different and we highly recommend you seek professional help from a qualified tax accountant to guide you through the audit process.
If you get an audit notice, we’re here to help! Contact us at info@sbsaccountants.com or 770-284-5537 today for a consultation.