• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pridgeon & Zoss, PLLC

Just another WordPress site

  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Home / Uncategorized / Preparing your business for a tax audit
  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Call
Contact
Blog

Preparing your business for a tax audit

Whether this will be your first year or your twentieth year filing taxes for your business, you always need to be diligent about preparing and filing. Even if you trust that you completed your tax forms correctly, you may still worry about an upcoming audit.

The key to an easy audit is maintaining clear records the entire year. No matter the size of your business, you need to have records of what your company did and what obligations you have to the IRS.

Here are a few tips as you prepare for an upcoming tax audit of your business:


Gather your records

Technology has been both helpful and frustrating when it comes to maintaining business records. The days of keeping receipts in a shoebox are long past, but now you may have records in multiple platforms.

Many platforms have sophisticated search tools. When you are searching through your records, check all the parameters (especially date) to make sure you find the right document for the correct year. As you are gathering records, consider creating tags or category labels for important tax documents.

When you make your records simple to access, it takes the pressure off of you when looking for a specific document for the audit.


Know your deductions

As people learn about the tax code and how it applies to your business, they tend to fall into two categories: they are either overly cautious and do not claim all the deductions they can, or they become deduction-happy and claim too many. Like many situations, the best solution is somewhere in the middle.

It is important to understand the deductions that are available to your business and what they mean, especially when there is an upcoming audit. One of the areas an auditor will want to examine is what deductions you claimed and why.

Most importantly, the auditor will also want to see documentation to back up the deduction. If you do not have it, you should document your efforts to recreate the original documents.

Going through a business tax audit can be intimidating. However, when you take the time to understand and prepare your tax documents, it can make the process less stressful for you and the auditor.

On Behalf of Pridgeon & Zoss, PLLC Feb 27 2020 Uncategorized

Primary Sidebar

Do Not Delay Responding to a Tax Notice

Name(Required)

Practice Areas

Tax Disputes

  • Tax Litigation
  • Audits
  • Tax Appeals
    • Appealing a Levy Action

Business & Payroll Taxes

  • Trust Fund Assessments
  • Complying with Sales and Use Tax Laws

Self-Employed

  • No Taxes Withheld

Outstanding Balances

  • IRS Collections and Currently Not Collectible Status
  • Settlement Options
    • Offers in Compromise
    • Installment Agreements

Latest Blogs

5 Things to Do if You Get Audited in Minnesota

March 27, 2023

What is a Trust Fund Recovery Penalty?

January 31, 2023

A Guide to the Minnesota Tax Appeal Process

January 27, 2023

The Secret to Successful Self-Employment

October 19, 2022

Things You Should Expect Being Self-Employed in Minnesota

October 13, 2022

Footer

Edina Tax Law Office

7301 Ohms Lane, Suite 420
Edina, MN 55439

Telephone: 952-835-8320

Fax: 952-835-0201

St. Anthony Tax Law Office:

2812 Anthony Lane S, Suite 200
St. Anthony, Minnesota 55418

Telephone: 612-455-8948

Pridgeon & Zoss, PLLC provides legal counsel for clients in Minnesota and Western Wisconsin

© 2023 Pridgeon & Zoss, PLLC. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy