Insurance and Credit

As a business owner, I was very scared when I received a state tax audit. My state’s sales tax laws were very general in their language and many of the laws were ambiguous. If I had violated any of the tax laws, it had been completely unintentionally. But I understood that even if it was an oversight that I could potentially lose my business. I knew that after I received the audit that I would need to find some expert tax audit defense to relieve some of my stress and to help ensure that the audit goes my way.

As a business owner it is your responsibility to guarantee that you follow all local and statewide tax laws and regulations. You must do whatever is necessary to make sure that you are following all of the tax laws and regulations that are mandated by your state. A state tax audit is just as serious as a federal tax audit and can leave your business deep in debt.

If your business is audited by your state they will send agents out to look through all of your financial records and accounting. If you can not provide them with the specific documentation that they request, they will automatically assume that you are not in compliance. Remember, the burden of proof lies with you as a business owner.

A state tax audit can put your business out of business if the state finds that you owe them back taxes. If your business is audited, you will need to find tax audit defense to minimize your problem.

By enlisting the services of a tax attorney, your odds for success will drastically increase. The tax attorney will deal directly with the state auditors and they can negotiate on your behalf for repayment options if you are found to owe back taxes.

A strong tax audit defense will protect you and your business from having to over pay the state and from the aggressive tactics of tax collectors.

My tax attorneys also informed me that all businesses must be prepared for a state tax audit even if they know that they are following all of the state’s tax laws and regulations. Many states randomly select businesses to audit to make sure that they are in compliance and the only way that you can be certain that your business will not have to pay back taxes is to keep comprehensive financial records detailing all of your transactions.

Once I hired the tax attorney to defend my business I knew that I had increased the odds of coming out of the audit quickly and successfully.

Tags: tax audit defense, taxes

This entry was posted on Thursday, June 4th, 2009 at 7:01 am and is filed under Taxes. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.