The chances of an IRS audit are low, but business owners should be prepared

The chances of an IRS audit are low, but business owners should be prepared

As a business owner, are you worried about an IRS audit? The good news is that the odds against being audited are in your favor. The IRS audited 0.6% of individuals in fiscal year 2018. Businesses and high-income people are more likely to be audited, but audit rates are historically low. However, some tax return items may raise red flags with the IRS, such as major inconsistencies between previous years’ filings and the current one, profit margins or expenses markedly different from those of similar businesses, and unusually high deductions. If the IRS selects you for an audit, we can help you understand what it’s disputing, gather the needed documents, and respond to the inquiries effectively.

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