Are You Going to Get Audited by the IRS?

Are You Going to Get Audited by the IRS

The idea of an IRS audit puts fear in the hearts of most business owners. An audit can be both time consuming and stressful, causing quite an inconvenience for your company. There’s no way to know for sure if you will be audited, but there are a few things that you can do to reduce the likelihood of an audit. At the same time, you can also be proactive to prepare your financial records to simplify the auditing process if it occurs.

Type of Business and Tax Return

Audits vary depending on the industry and the way the tax return is filed. Even though the IRS doesn’t share details about the way they choose companies to audit, there are a few indications that help tax professionals know what to avoid.

One of the best things that you can do as a business owner is to hire an experienced financial team to help with your company. A bookkeeping service can keep track of financial records throughout the year, which is beneficial to improve the accuracy of your tax filing at the end of the year. By keeping good bookkeeping records, you will have everything that is needed in case an IRS audit happens.

Also, it is best to have an experienced accountant handle your tax return for you. Most business owners don’t keep up with tax law, and they might accidentally overlook important details by attempting a do-it-yourself tax filing. Instead of causing problems by submitting the tax filing incorrectly, it is much better to hire an experienced accountant to help.

Watch Your Deductions and Claims

One of the advantages of owning a business is that you have the opportunity to write off costs that are necessary for the company. But, the IRS knows that some small business owners try to push the line by writing off things that might not be necessary.

To avoid an audit, you need to be selective about the expenses that you choose to deduct. Also, it is essential that you keep detailed records of every transaction so that you can back up the claims if questions are asked in the future. Keep these records on file for a while, in case an audit comes up several years down the road.

Here at Easier Bookkeeping, our team is available to help with all of your bookkeeping and financial needs. We want to make it easy for you to manage the financials of your company so that you can focus on other aspects of business ownership. Call us today for details about the services that are offered: (888) 620-0770

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