It finally happened . . . you received a notice in the mail from the IRS.
After glancing furtively at the unopened envelope sitting on the corner of your desk for a few days or weeks, you finally take a deep breath, open the letter, and with a sinking feeling, discover that your business has been selected for an audit.
You might decide to handle the audit on your own to avoid having to pay a tax professional to represent you. If this is your choice, you’ll meet with an ostensibly friendly auditor, answer the “nice” auditor’s questions, dig up, organize, and deliver all of the canceled checks, copies of paid bills, cash receipts, bank statements, loan document, spread sheets, and whatever else the auditor requested.
The auditor will process all the information you provide and, if you luck holds, you just might walk away with a minor audit assessment.
But what happens if the auditor doesn’t allow deductions and/or overestimates your income and presents you with an unfair or unjustified assessment?
You can complain all you want while you’re writing a big fat check to pay taxes, interest and penalties [Read more…] about “AUDIT-PROOF” YOUR BUSINESS FROM IRS AUDITS? – Part 3