If your business is on the verge of being audited, you need to take the next few days and weeks very seriously. Even if you have acted within the law and made responsible financial decisions over the last few years, it can be easy to slip-up and fall into some serious tax and auditing issues.
Here are some tips to help your business deal with an upcoming audit:
- File everything on time — The best way to avoid serious trouble is to file your company’s tax return on time. Your organization will be hit with a much steeper penalty if you make any late payments. Keep in mind that corporations that have assets of $10 million or more are required to electronically file their income tax returns.
- Get your records in order — Whether you know you’re going to be audited or not, you should still keep track of all your company’s records. From sales receipts to employee payments, make sure you have everything so the IRS can find what they’re looking for.
- Consult with a business advisory firm — Working with a professional business advisory organization is a great way to stay out of financial and tax trouble when it comes to future audits. These organizations are there to help you make the right decisions at all times. Additionally, working with an accounting firm can help you better keep track of all your essential documents and will help you understand your company’s finances.
- Respond immediately and thoroughly — It’s better to address the auditing situation right away than hide from it. If you’re contacted by the IRS, you need to handle it immediately. Answer their calls and work with them as much as you can to avoid a lengthy, drawn-out process.
- Research as much as you can — Researching tax issues, financial workings, and your own company’s history can help you avoid additional trouble.
If you want to learn more about protecting your business during an audit and want to speak with an experienced advisory firm, contact CST Group today.