The day-to-day running of a small business can be challenging in itself, so when you are faced with additional obligations such as a business audit, you may feel overwhelmed.
It is important, therefore, that you take the time to understand how you can take on a business audit efficiently. By staying organized throughout the process, you will have a better chance of having a smooth audit experience that will not negatively impact your business. The following are some things that you can do to help streamline the process.
Look for validation
When conducting a business audit, the Internal Revenue Service (IRS) will be looking through your records through a lens of suspicion. Therefore, documents that validate your tax returns are the most valuable because they put these suspicions to rest. You should take the time to sort through your documents and select records that will benefit the audit.
Justify your benefits
If you are claiming tax benefits, the IRS will want to know that these claims are made in good faith. Therefore, you should take the time to prepare justifications in advance. If it is not possible to provide papers that justify your benefits, you should write a formal statement that gives your reasons for believing that you have an entitlement to them.
It may sound obvious, but investing time early in the audit process to get organized will undoubtedly pay off in the long run. It will also reduce stress and limit the impact that the audit has on your business.
If you are facing a business audit in New York, it is important that you are well-informed of your legal rights. An experienced attorney can help.