04/21/2017
Preparing for IRS tax audit: Any business can be audited, and the best thing to do is to so conduct your business that the process will be straight-forward and not time consuming. Here are some tips: 1) make sure that all your supporting documents are properly filed, i.e. in the format of your accounts. for example, file all entertainment vouchers in a separate file and in date order of expenditure. 2) If the IRS contacts you to conduct an audit, they will advise you of the areas they wish to cover and the documents they require. if your files are kept in the suggested order you should not a difficulty in this area. One more thing; it will be less stressful if you file your supporting documents and vouchers on a daily basis if possible. This way it is less likely for documents to be lost or mislaid. In an audit situation you will save time and get back to your normal business much earlier. Failure to provide the requested supporting documents may lead to a more extensive audit process, possibly covering more years.
