Business Audits Can Put Your Company’s Financial Health At Risk
Is the IRS auditing your business? If so, there is much at stake. An audit involves an intense investigation into your business’s finances and can expose your company to great financial loss.
At Coggins Law Office, I — attorney Brian Coggins — can help protect your company during the audit process. Located in Roseville, California, I represent small businesses throughout the Sacramento area during IRS audits, helping my clients limit their financial liability and safeguard their business reputations.
What Triggers an IRS Business Audit?
While any business can come under audit, there are certain triggers that make a company more likely to be examined by the IRS.
If a deficiency is found, the IRS can begin collection actions quite quickly. You have a limited amount of time to appeal its decision. I can help you appeal your tax debt and prevent collection proceedings, but you must act fast.
Common triggers include:
- Worker reclassification
- Using property for business and personal uses
- Deducting business losses
- Providing fringe benefits to employees
- Maintaining two sets of books
- The audit of a related party such as a business associate
I Will Protect Your Business During an Audit
Business audits are often more involved, lengthier processes than individual taxpayer audits. While under examination, the IRS can review everything from your corporate books to your employee situation. It can also summon third parties — such as external business associates — and question them about your company’s financial situation. This can be damaging to your business relationships and future prospects.
When representing businesses during audits, my goal is two-fold:
- Protecting your company’s financial health
- Safeguarding your corporate goodwill
I do these by acting as intermediary, communicating directly with the IRS on your behalf to ensure you are providing all of the required information without exposing yourself to potential additional liability. This helps prevent fishing expeditions by the IRS — requests that go beyond what is needed to perform the audit.