What is the process for an IRS business audit

Описание: If your business is going to be audited by the IRS, it is important that you understand the process. In this short video San Diego tax attorney William Hartsock will explain the process the IRS follows during business audits. For more information about IRS audits, please visit: http://thetaxlawyer.com/irs-audit

The process that the IRS uses in order to audit a business is different than an individual. What they generally do is they know that the businesses generally have a QuickBooks or accounting program that's already set up. You should have all of your income and expenses already input into a QuickBooks accounting program, so you know what your income and expenses are.

What they like to do in business audits is they like to contact the CPA. They like to contact the tax preparer, or the enrolled agent, get a copy of those business records, compare those financial statements to the tax return, see if there are any differences, and then go into detail and take a look at the individual's bank statements, cancelled checks, credit card statements, all those. Then show that they're trying to under report things to your CPA so that you are, specifically, intending them not to be included on the income tax return. That's a real problem.

It's important that you make sure that you know about any potential problem before the audit even begins. This tax law firm will take a look at your books and records, interview your CPA or tax return preparer, and make sure that all those issues are resolved well before the audit begins.