Death and taxes may be the only guarantees in life, but the looming fear of a tax audit is nearly as dreadful. Whether you underpaid or overpaid, you want your audit to go as smoothly as possible. The following tips will help you see that it does:
1. Keep data organized. You will need to gather your chart of accounts, sales invoices, corporate books, sales tax returns, profit and loss report, and any other financial records relevant to your business. Always keep your documentation accurate and up to date. This will ensure that should you need to review those items again, there will be no difficulty finding them.
2. Allow plenty of time for the audit. A sales tax audit is a tedious prolonged affair. The auditor will not be able to accurately gauge the time necessary to perform his function until the audit is well underway. Make sure that your staff is prepared to be without you as you need to make yourself as available to the auditor as possible. If you have adequate notice, training a temporary replacement would be advisable.
3. Leave it to the professionals. You may find it necessary to consult with professionals who can help you navigate the sales tax audit waters. If you are feeling completely overwhelmed and unequal to the task, professional IRS audit help can organize your information and prepare you and your staff for the audit process. Click here for more information about professional IRS audit help.
4. Less than appealing. You may find that the results of your recent audit leave a lot to be desired. If that’s the case, you may want to consider an appeal. If you choose to appeal, you must be certain that your claims are easily defendable by documentation. Prepare yourself for a long term battle as the appeals process involves a more close analysis of your papers.
5. Is your appeal the right appeal? Be mindful of which dispute resolution you attempt. If you are unsure which to choose, you may want to reconsider the need for a tax consultant. You need never feel lost in the audit process.
- South Dakota’s sales-tax exemptions affects all of us (dakotavoice.com)
Annette is a tax guru that likes to help people with tax issues. She works for a company that provides tax resolutions services to give you advice on what you need to fend off tax nightmares. Visit toptaxdefenders.com to learn more.