Christian CPA Teaches How to Prepare for & Survive an IRS Audit
Christian CPA Teaches How to Prepare for & Survive an IRS Audit
CPA Serving Atlanta GA & Beyond
As we watch gifted athletes do what appear to be miraculous things on the field of play, we often fail to keep in mind the endless hours of preparation, practicing the basics and coordination that went into playing and excelling at such a level. For just as “failing to prepare, is preparing to fail” so it is with all walks of life. Most IRS audits, though they feel extremely personal, are predominantly a pure random selection. It is solely a matter of your number coming up. In any given year, a taxpayer, whether business or personal, has approximately a one to two percent chance of being selected and audited. If and when your number is called for an audit and you receive that tax notice in the mail, it is time to prepare and to prepare well. These steps will guide you to audit success with the goal of no adjustments always being the final result:
Retaining a CPA as Power of Attorney
“Even now my witness is in heaven; my advocate is on high.” Job 16:19 Just as Believers we have an advocate in Heaven who will go before us representing our heart, intentions and actions so should be wise stewards and surround ourselves with wise counsel. Hiring a CPA who can be a tax advocate is your best first step in the process. Having someone who is familiar with the audit process, tax law and collection issues is imperative to ensuring that your best interests are always represented. Having a wise understanding of the needs and skill a good CPA will provide will enable you to make a sound and judicious business and tax decisions. “Plans fail for lack of counsel, but with many advisers they succeed.” Proverbs 15:22
Prepare, Prepare, Prepare
In the New International Version (NIV) of the Bible the issue of preparation is detailed one hundred seventy six times making it clear that planning is a key tenant in both success and order. The basic first step in preparation is to consistently do the right thing over and over regardless of the circumstances. Keeping good records, documentation and copies of required receipts is something that should never go out of style. Each and every tax year’s data should be well-organized so that you are ever ready and if called to task for any task item required, you will be well armed and able to address and answer any tax questions. Saving copies of tax records, board of directors and shareholder’s minutes, annual registrations and income tax returns is critical to ensure that you will have all the necessary paperwork and documentation that would be needed, in the event of an audit. Automobile expenses are frequently the bane of many in addressing audit questions and their positive resolution; having a by day mileage log to support all of your business miles will help detail and support this deduction. Being aware of what documentation is required for proper tax documentation and recordkeeping to validate tax deductions, will be an invaluable asset to being ever ready, if called to task, to prove or validate a deduction. In order to best understand what is a valid tax deduction and the recordkeeping required visit the below fine articles.
Finding (and Tracking) Business Tax Deductions http://www.hiscpa.com/maximizing-deductions.html
Whether you are a new business owner or have owned your company for years, missed business deductions are a consistent cause of concern. Find new ways and methods to improve your business tracking skills.
Business Expense Documentation http://www.hiscpa.com/business-expenses.html
Business expenses and their adequate documentation is key to running a successful business. Learning the ins and outs of what is required will both raise the efficiency of how you run your business and ensure that you always have proper documentation in the event of an audit.
Handling Automobile Expenses http://www.hiscpa.com/autos.html
Vehicle expenses are perhaps the most discussed while still being the least understood of all the tax code sections. Discover how this section of tax law can be made simple so that all might understand.
Tax Expediency and Responsiveness
When that tax notice first arrives there is a tendency to put it aside and to deal with it when we have to by waiting for the last possible moment, rather than addressing it expeditiously as we ought. Setting the notice aside is a sure fire way to ensure your audit experience is going to be worse than it needs to be. Initially retaining a CPA to address all of your audit issues is your best first line of action naming your CPA as your sole and exclusive representative to talk to the IRS field agent on each and every audit issue. Accordingly it is usually best not to have the business owner or taxpayer involved in the actual performance of the audit itself, leaving all of the interaction on all of the tax and documentation issues to the CPA. Having all of the requested information well-organized and ready for the tax examination as well as thoroughly explained in writing an integral component of audit success.
In our world of technology and specialization, understanding the general nuances of how an audit works will do much to make an unexpected audit go smoothly. Having an advocate, understanding documentation requirements and being prepared will ensure a far better audit result. Keeping in mind the goal of having the IRS accept all filed returns to be correct as filed, that there are adjustments to be made, and most of all that there are no additional monies due will help keep ensure that both the audit itself and its result are maximized to your best advantage.
Written by author John Dillard CPA of His CPA at 770 814 9304 and visit http://www.hiscpa.com/ (a Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.
We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain and Decatur, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock
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