If you live in El Paso and you’ve received small business audits, hire an attorney who specializes in these types of audits. Chances are low that you’ll be audited. Regardless, it can come out to be an expensive process. Not just because of what the IRS believes you owe them, but also the amount time you have to reinvest from your business to this audit. A professional like Clifford, Ross, Raudenbush & Cooper can help you on both of those accounts.
Why Audits Occur
An audit can appear to be random at first. But there are actually a few factors that the IRS take into consideration when auditing. When you file your taxes to the IRS, they all go through a process known as a discriminant index function, or DIF, score. This alerts the IRS of any abnormalities in deductions and income reported. If there are enough, then you increase your chance of small business audits.
Another way the IRS can flag you is when they are performing small business audits on businesses that you associate with. They will make sure that transactions with this other business are correct. If they weren’t, they will likely audit your business as well. By being careful when filing your taxes, you can avoid having receiving small business audits
How To Deal with Small Business Audits
Still, if you have received an audit then you should make the most out of the situation. If you for any reason forgot or neglected to claim a deduction, an audit is another opportunity to do so. This is because business over look deductions such as home office expense and business milage.
Small business audits may sound scary but if done correctly, it can actually benefit you. Clifford, Ross, Raudenbush & Cooper has the expertise in small business audits to help you. Letting us get your taxes done the best they can, will let you focus on running your business the best you can. Contact Clifford, Ross, Raudenbush & Cooper today.