One of the most frightening experiences any small-business owner can face is an audit by the Internal Revenue Service. Even if you've been diligent about keeping records and filing your taxes on time, you're not guaranteed to escape further scrutiny into your business finances. But the experience can be less daunting if you remain calm and follow a few suggestions to keep a bad situation from getting worse.
A number of things can trigger an audit. Your reported figures might not match up with a client's reported expenses. The amount you spent in a certain category might be higher than the amount spent by similar business owners. Or you could simply be one of the random 5,000 S Corporation business owners the IRS announced last summer that it would target to determine reporting compliance of business entities. Whatever the reason your business is targeted, the important thing is that you don't panic.
Call Gerald Fitzgibbons CPA PLC and we will help you give a step by step instructions and help you handle the audit.