Why Is My Small Business Under Audit?
Ever wonder why YOUR small business was targeted for an audit. See below the top reasons why you might have been a candidate.
As a small business owner you are 4 times more likely to be audited than a W2 wage earner.
How are you chosen to be the lucky one?
1. Computer Picks – Computer scoring is the most likely way a small business gets picked. An IRS program scans every return and assigns a numerical score. Sole proprietor returns are audited the most. The audit rate on LLC’s, Partnerships and C Corps is less than Sole Proprietors.
2. Market Segment or Industry Specialize Programs – Each year the IRS targets certain businesses for audits.
3. Informants’ Tips – Tips from disgruntel former employees or ex-spouses can’t rigger audits.
4. Follow Up Audits – If one of your business partners gets audited you may be next.
5. Prior Audits – If you are audited and the IRS collects from you it is likely you will be audited again.
6. Criminal Investigations – When an arrest is made and a lot of cash is found an audit is likely.
Poor record keeping is the downfall of most audit victims.
Takeaway
Is your business being audited? Let us handle the technical stuff while you get on your feet! Call 256.489.1478 or schedule a direct appointment below.