If the Internal Revenue Service (IRS) is auditing your business, there are various steps you can take to prepare. IRS audits are hardly a pleasant experience, but proper preparations and strong legal guidance can help you obtain a positive outcome. For such reasons, our Rancho Cucamonga tax attorneys have put together tips to help you prepare for a tax audit.
Prepare Your Business for a Tax Audit
Locate Tax Return Documents
When the IRS conducts an audit, they will want to examine all the records you used to prepare your tax returns. Therefore, you should gather and organize tax records and important financial information to help you prepare. You should gather documents such as accounting records, big purchase receipts, checks, and more.
Prepare Justifications for Claiming Tax Benefits
Another great way you can prepare for a tax audit is to have proof that you were entitled to claim tax benefits or deductions. If you can’t find justifications, then you should prepare a simple statement to tell the auditor why you believed you could claim the benefit.
Seek Legal Guidance
The best thing you can do to prepare for a tax audit is hire an experienced tax attorney. When the IRS wants to investigate your business and finances for evidence of what amounts to tax fraud, you need an aggressive advocate who will help you counter your audit. An attorney will be familiar with tax laws, so they can help identify any mistakes your company might have made or gather justifications needed to protect your business.
Rancho Cucamonga Audit Defense Attorneys
If you received a letter from the IRS informing you that it intends to conduct an audit, you should reach out to The Blue Law Group as quickly as possible. It is imperative that you shield your company from tax penalties and avoid criminal accusations, such as tax fraud. As a CPA, attorney Blue is qualified to craft a unique defense against an audit from the IRS or a state tax authority who wants to pry into your business.
Contact our Los Angeles audit defense lawyers today at (909) 766-9996 to schedule a free initial consultation!