Cash intensive businesses often find that they have to prepare for IRS audits. They are sometimes assessed in this way by the IRS because they handle most of their payments in cash, so there’s less documentation available for them to present.
If you operate a grocery or restaurant, you’re very likely to face an audit at some point. In this situation, it’s important to get help from a knowledgeable tax attorney.
What should you do if you’re notified of an audit?
When you’re told that you’re about to be audited, you may start to worry. Even if you file tax returns regularly and all the annual reports for a business have been submitted on time, you may still be worried that the IRS will decide that you have to pay a large sum of money. The only way to be properly prepared is to get help from a professional who knows the law as well as the IRS does.
Hillhursttaxgroup.com can guide you through the audit. They can help to make an extremely challenging experience much more bearable. With their support, you’ll understand the entire process more clearly and be able to present all the facts that are required for the IRS to make a fair decision.
Prepare for Minimum Income Probes
Cash intensive businesses are often subjected to minimum income bulbs. Construction businesses, trucking companies and other businesses in this group sometimes find that a portion of their income may be under reported.
Tax attorneys help businesses to prepare for minimum income probes in several ways. For example, they and your accountants check that the income you’re reporting is sufficient to support your lifestyle.
They also help you to prepare for interviews with auditors. These interviews are very important because cash intensive businesses often don’t have physical records to support the statements that they make regarding their income. The details provided orally will help to support your income declaration.
Ensuring that You Understand How the Law Applies To You
As a taxpayer, the only information the IRA may have to base its decision on in the audit is your oral testimony. Your business may not have a large number of records which would serve as evidence of your income.
The answers that you give in the interview are very important. Your tax attorney will explain the relevance of the type of questions that you can expect, so that you give accurate answers. If you don’t present all the facts to the IRS, they may come to a decision which is not based on how your business actually functions.…