Business Taxes: Business Audit

Business Audit: Contents

What is a Business Audit?

As a small business owner, you are responsible for maintaining clear accounting books that show your business’s income and expenses.  A business audit is a systematic review of your business’s financial records and transactions.  Auditors review and assess your financial statements and accounting books.  Many small businesses have disorganized or missing records.  When facing an audit from the tax authorities, it is imperative that you get assistance from qualified accounting and tax professionals.

Everyone fears the spectre of an audit by the tax authorities.  They delve deep into your personal and professional life, often resulting in significant fees, penalties, interest, and tax debt that can be overwhelming.  It would be silly to face an IRS audit on your own, and the person that prepared the tax return on which the audit is based is simply not the right person to represent your interests during an audit.

Our team of tax professionals have decades of experience in (i) negotiating “zero change” audits that do not increase your tax liability, (ii) limiting the scope of audits so they do not get out of control and last for years, (iii) protecting taxpayers’ rights during the audit process and limiting or preventing collection against taxpayers’ assets and income, and (iv) negotiating the best possible outcome for taxpayers under a plan that is affordable.

What is an IRS Levy?

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.  If you receive an IRS bill titled “Final Notice of Intent to Levy and Notice of Your Right to A Hearing”, it is imperative that you get assistance from qualified accounting and tax professionals.

A bank levy, for example,  is the legal seizure of your bank account(s) in order to pay a tax debt.  With a bank levy, the IRS simply takes your money directly out of your bank account and applies that money to your tax debt.  Your bank may also freeze your bank account during this process, meaning that you cannot withdraw your money or pay your bills. 

Our team of tax professionals knows how to negotiate with tax authorities to obtain a full or partial release of any levy that may have been initiated.

What is a State Levy?

A state levy is a legal seizure of your property to satisfy a state tax debt.  It can require third parties, like your bank, to freeze your accounts and send your money to the state tax authorities to satisfy a state tax debt.  Some state tax authorities are required to file a tax warrant before serving a levy.

Some states are even more aggressive than the IRS in their collection efforts.  In connection with a state tax levy, state governments can also restrict your driver’s license and your registration, take away your professional licenses, and place liens on your property. 

Our team of tax professionals has experience dealing with both the state and federal tax authorities to obtain a full or partial release of any levy or other proceeding that may have been initiated.