Or at least, to lessen the impact if the IRS does come calling
No one likes an audit
Except maybe the IRS.
Have they ever knocked on your Payrolldoor
…letting you know that they’ll be auditing your company’s operations?
Yikes, right?
Audits are scary and stressful. Who know’s what lurks deep in your records and throughout your processes. Even when doing‘everything right’, it’s creepy to have outsiders poking around. Maybe everything will be just fine. Maybe not.
It’s the unknown that causes sleepless nights.
Audits eat up time. It usually takes a team of people to prepare for an audit, which is also distracting. Your company hired and is paying people to do their real job. Now workers must do more for the IRS and less for the company? Which is expensive, too.
Audits cost, if you’re judged as non-compliant. Hefty financial penalties can be assessed. How much? Depends on the type of audit. More on that down the page.
Your brand can suffer. You built and polished your brand over years, decades even. It’s a PR nightmare to lose that in a moment. If judged non-compliant, and you’re a major player in your space, the business world is sure to know. And customers, too.
Building your image back up, is almost like starting over.
All this sound like something you want to avoid?
Or at least, not lose any sleep because you’re confident HR is doing everything plausible and possible?
Read on.
Types of audits
Here’s the main audits the IRS conducts. They range in severity. The more you’re prepared, the less likely you’ll pay any significant costs.
Correspondence audits
The least severe of audits.
You’ll receive a letter from the IRS in the mail for Correspondence audits, usually requesting information about a previous tax return.
Often, for small issues, Correspondence audits are done through mail. If you maintain proper records, these audits can be resolved rather quickly.
Office audits
When the IRS has questions about any tax returns, count on getting invited to their office for an audit. You learn of this by mail.
The Office audit is more serious than the Correspondent audit.
You’ll probably want to bring along your tax preparer, accountant, or attorney.
Office audits are usually completed in a day. If needed, they’ll give you more time to supply any missing information.
Field audits
The most serious, and comprehensive, of audits.
The IRS is a coming to an office near you- yours, that is.
Or at least, to lessen the impact if the IRS does come calling
No one likes an audit
Have they ever knocked on your Payroll door
It’s the unknown that causes sleepless nights.
Building your image back up, is almost like starting over.
Types of audits
Correspondence audits
Office audits
You’ll probably want to bring along your tax preparer, accountant, or attorney.
Field audits