Audit is one of the more fearsome words in the English language. But, with Whyte & Associates, Inc. as the trusted financial partner on your business’s side, an audit doesn’t have to be a source of considerable stress and anxiety. In fact, the first step to a healthier outlook on this process is to understand what the IRS audit really is as a means of overcoming any preconceived notions you may have about it. Below, our team in Rancho Cucamonga, California, is pleased to provide a few pointers about audits for small businesses (and more) to help you sleep a little better at night!
Many of our clients who receive the notice from the Internal Revenue Service may (erroneously) assume they have done something wrong. But that’s not always the case. Audits are simply a complete review of the taxpayer’s or organization’s financial reporting. And, while the agency may order it due to inaccuracies or errors, you may also be audited simply as part of routine procedures or for compliance purposes, or your return may be flagged arbitrarily. The IRS’s computer screening program selects some financial records at random. They use these randomly selected returns to identify “norms” in return processing based on statistical formulas.
Additionally, your return may be flagged due to another taxpayer’s return! For instance, the IRS may want to take a closer look at certain aspects of your return due to issues or transactions stemming from a business partner’s or investor’s flagged return. With so many potential triggers for audits, do not jump immediately to the worst possible conclusion.
We encourage our clients to contact us immediately if they receive a notice of audit. It can be overwhelming and emotionally taxing to negotiate and navigate this process on your own when you are not familiar with its ins and outs. We have a full spectrum of audit knowledge and experience, from representing individuals, businesses, and nonprofits facing government tax audits to partnering with franchisees to prepare them for audits conducted by their “parent” franchisor. This level of expertise helps support the most favorable result and quick resolution.
Accounting, auditing, tax, and consulting firms vary in their experience with different types of audits. Whyte & Associates, Inc. is among the most experienced and skilled firms for audits in Rancho Cucamonga, CA, and the Inland Empire as a whole. We have served a diverse array of organizations for almost 70 years. Additionally, our seasoned team includes Enrolled Agents. This is the highest distinction awarded to accounting/tax professionals by the IRS. This means that we are qualified to represent all taxpayers on all tax matters and at all IRS offices and administrative levels. We welcome the opportunity to put the audit behind you or, as needed, to use audits of your operational processes to your advantage – as a means of finding better, more efficient ways to do things and to equip your business to grow further. Call (909) 575-0080 to speak with a member of our team today.
