Recently published reports indicate that the Internal Revenue Service will focus more resources on audits of small business taxpayers, specifically Subchapter S corporations and Limited Liability Companies. I currently have 3 clients with audits scheduled over the next two months.
You should never represent yourself in an audit. Why, well I have children to put through college but more important the taxpayer has an emotional attachment to the process and that will always work against them. Last week while discussing the scope of an audit with a revenue agent we were able to agree that in lieu of a traditional face to face sit down over several days the agent will accept copies of specific documents, by mail, to support the positions taken on the tax return. Based on the agent’s initial feedback the likely outcome will be a “no change” report. Hopefully the next 2 audits will be just as easy.
If you are being audited or know someone who is now is a good time for them to talk to me. How can you tell if someone is being audited? They probably look very pale.
For more information call me at 678-624-4775 or send an email to Peter@TarantinoCo.com