A business tax audit is different from a personal tax audit in several important ways. Here is how we handle some of these business audit differences at IRS-SOLV:
- We never let our client attend the audit interview. We prefer to do that…alone.
- We ask our clients to allow us to speak to the IRS auditor, instead of the client speaking with the auditor. This preserves the integrity of the defense, keeping unsaid the things that should never be said to an IRS auditor
- Shareholder derivative suits are suits brought by shareholders against the officers and/or directors of a corporation. We guard against shareholder derivative suits. The cause of action for this kind of suit is grounded on an alleged breach of fiduciary duty. Because these kinds of suits are becoming increasingly common and they grow more risky, it would be wise to secure expert and competent lawyers such as our firm to handle your defense
- Sometimes an angry ex-spouse or business partner snitches on a taxpayer. The information given may be false or it may be the truth. When this happens we go out and immediately obtain their statement so that we can contradict where the truth requires it.
- A juicy tax audit subject is the use of tax shelter investment losses. We help in the defense of such a claimed loss by the taxpayer. You have complex investment or business expenses on your tax return. We are highly experienced in the area of transaction law and its tax effects
- Oftentimes a business will have have large amounts of itemized deductions on its tax return that are outside IRS audit parameters. We can insulate these in advance–anything less will automatically trigger an audit.
- Cash receipt business people are in a high risk category for audits. Lawyers and doctors and waiters beware.
- Business expenses high in relation to business income? It happens. We help insulate against this audit trigger by generating substantiating documentation.
- Rental expenses on your tax return are a huge audit trigger, yet most often these are legitimate. We can help you prove your expenditures in the course of the audit by several means we use.
- You have complex tax transactions without explanations on your tax return. We will reverse-audit these items and prove them to the auditor
- Beware the auditor who thinks he or she needs to come to your place of business and talk to your customers or clients. Call us without delay and we’ll prevent this from happening.
- Similarly, an IRS auditor wants to come to your home and you don’t want them there-call us without delay and we’ll step in.
These are just some of the ways we can help in the area of business or commercial audits. Call us when you get the notice and we’ll help you get the jump on the case that you will find is necessary.