What are business tax audits?
Business audits can be voluntary or involuntary. The IRS and state revenue department conduct them to check if you’re paying the right amount of taxes. Additionally, many companies routinely have outside accountants comb through their books to ensure compliance.
All business audits are different, and depend on your industry, company size, and reason for audit.
Connect with an Illinois business tax audit lawyer
When you enlist one of our tax lawyers to represent you during an audit, we take over. In fact, we won’t even let you talk to the IRS or State, because we know what to say and what not to say. The goal is to emerge from the audit with the best possible outcome, and hiring a tax attorney is often best way to reach that goal.
Types of business audits
Audits come in a variety of shapes, sizes, and foci. There are procedural compliance audits to ensure companies’ policies fulfill internal or regulatory requirements. Financial audits examine “the books,” and are the most common type of voluntary business audit. Investigative audits are initiated by authorities when they suspect fraudulent activity.
Often, the most feared of audits is the tax audit, executed by either the IRS or state revenue department. And it’s where we come in.
Business tax audits can audit:
- Income tax
- Sales/use tax
- Tobacco/alcohol tax
- Amusement tax
- Other taxes
Business taxes can happen in one of three places:
- Your place of business
- The office of a designated representative, like a tax attorney
- An IRS office