Receiving notice of an IRS audit can be an overwhelming and stressful experience for any business owner. An audit indicates that the Internal Revenue Service (IRS) is reviewing your financial records to ensure compliance with tax laws, which can lead to penalties if issues are discovered. While the audit process can seem daunting, the most critical piece of advice is simple: do not communicate with the IRS directly. Instead, hire a Certified Public Accountant (CPA) to manage the process on your behalf. What Happens During an IRS Audit?An IRS audit is a thorough examination of your financial records, aimed at verifying the accuracy of your tax return. This includes checking if you’ve properly reported all income, followed applicable tax laws, and accurately claimed deductions. Various factors may trigger an audit, including unusual income patterns, large deductions, or inconsistencies on your tax return. The IRS typically selects individuals or businesses for audit based on red flags, but audits can also occur randomly. Business owners, in particular, are more prone to audits due to the complexity of their financial situations. Once an audit is initiated, you will need to provide supporting documentation to substantiate your tax filings. Why You Should Not Handle the Audit YourselfOne of the biggest mistakes a business owner can make is trying to handle the audit themselves. While it may seem tempting to respond directly to the IRS, this can lead to serious consequences. Communicating with the IRS without professional assistance can result in unintended admissions, providing contradictory information, or even unknowingly making errors that escalate the situation. These missteps can lead to severe financial penalties, increased taxes, and, in extreme cases, legal consequences. How a CPA Can HelpWhen facing an IRS audit, a seasoned CPA is your greatest asset. Here’s how a CPA like Larry Bradford can assist you:
Don’t Wait – Hire a CPAIf you’ve received an audit notice, the best course of action is to immediately hire a CPA. The IRS is a powerful federal agency with vast resources, and navigating an audit without professional assistance is risky. By hiring a CPA, you gain peace of mind knowing that an experienced professional is protecting your interests and managing the process efficiently.
With over 40 years of experience, Larry Bradford, CPA, well-equipped to help business owners navigate complex IRS audits. Don’t risk handling it alone—contact Larry Bradford today to ensure your audit is resolved swiftly and with minimal disruption to your business. Call 512-402-0049 or send an email to [email protected] to set up an appointment. Comments are closed.
|
AuthorLarry Bradford Archives
November 2024
Categories
All
|