Small Business Audit Defense Support

While we do not represent clients in person during an audit defense, our process typically yields the most favorable results. We recommend that your business stay audit-ready by utilizing our suite of financial services, which includes quarterly estimated taxes and small business tax preparation and filing.

This way, you'll have peace of mind knowing your materials are error-free and always ready for IRS scrutiny.

While we do not represent clients in person during an audit defense, our process typically yields the most favorable results. We recommend that your business stay audit-ready by utilizing our suite of financial services, which includes quarterly estimated taxes and small business tax preparation and filing.

This way, you'll have peace of mind knowing your materials are error-free and always ready for IRS scrutiny.

We recommend our audit defense solution to most of our small business clients, in addition to other services, such as full-service bookkeeping and tax advisory. These additional services ensure that your books and tax situation are accurate, up-to-date, and ready for IRS scrutiny if you receive an audit notice.

Whether you've received IRS audit notices before or it's your first time, it's always a good idea to consult your tax professional.

When you use our audit defense service, we develop your custom action plan, create a communication strategy, and help you prepare all relevant financial accounting documents to support your case and protect your rights. Knowing you have experts on your side helps make a stressful process much easier to manage.

There is a distinct difference between a notice and an audit. A typical IRS notice highlights specific areas of your return that require attention, such as missing information or mathematical errors. This does not necessarily mean you are being audited, as many notices are automatically generated. In response, you must provide the requested information or agree to the mathematical change or correction.

An audit is much more comprehensive in scope. Typically, an IRS agent will scrutinize particular areas of your tax return and seek to substantiate your claims via proof of your financial records. If questionable patterns emerge, the IRS agent may opt to review previous tax returns.

Many of our plans include audit defense. Your dedicated accountant or team can confirm whether your current plan covers audit representation, and help you add this service if it doesn't. Your accountant or team produces error-free, audit-ready work throughout the tax year.

The optimal audit defense strategy involves seeking assistance from experienced tax professionals and actively participating in the process. While the IRS can seem intimidating during an audit, they are helpful and professional with cooperative business owners. However, not every business cooperates.

Ignoring audit notices further exacerbates issues and can lead to the IRS assessing interest and penalties based on the information they have on file, even if it is incomplete. For example, they might not have your expenses on file. However, if they have an income source reported on IRS Form 1099-NEC, they will assess your taxes without considering any deductions. Penalties can also lead to liens being placed on your property.

We help you navigate your IRS audit in many ways. First, we clearly explain the purpose of your audit and the specific items in question. Next, we work with you to provide the ranking IRS agent with the documentation and materials they need to verify aspects of your business tax return. We may provide additional supporting communications, such as drafting IRS response letters, to ensure your rights are protected and that you receive the most favorable outcome.