PLEASE NOTE: To protect your health and safety in response to the threat of the COVID-19 Virus, we are offering our clients the ability to meet with us in person while maintaining social distancing, via telephone or through video conferencing. Please call our office to discuss your options.
Call Our Team Today

Steps to take during a business tax audit

| Jun 7, 2018 | audits

Maryland business owners may not like the thought of an IRS audit. In addition to the time needed to resolve the matter, a company could owe more money to the government. However, it is important to remain calm and polite throughout the process, and it is rarely a good idea to go into a meeting with the IRS alone. Instead, bringing in the company’s accountant can be helpful in answering the government’s questions.

When a company is audited, the notice will explain the nature of the examination and what it will focus on. From there, a company should gather as much information as it can to defend its position. If necessary, businesses can ask for more time to prepare for the audit. As long as the request is in good faith, it will usually be granted as this can be a complex matter.

It is important to never give any more information than the audit requests. By volunteering extra information, it could make the government’s job easier or even expand the scope of the investigation. The risk of offering too many details is another reason why an accountant should answer an agent’s questions as opposed to meeting with the IRS alone.

Companies that are going through the audit process may benefit from taking time to understand their rights. Subjects of an audit are allowed to hire legal counsel to speak to the IRS on their behalf. An attorney may also be able to advise a business that has been audited as to what it can do or say to increase its chances of obtaining a favorable outcome in the matter.