There may be many business owners who feel that tax planning might be one of the most daunting aspects of owning and operating a company. The complex nature of such a topic might leave many entrepreneurs with concerns that they might make mistakes that could lead to costly tax fines and penalties or prompt an audit of the company. While there may be steps business owners in Georgia can take to help reduce the risks of being chosen for business tax audits, avoiding a similar process entirely might not always be possible.
Business owners who wish to improve compliance in their operations and help reduce their risks of being selected for tax audits might consider taking numerous steps, such as:
- Be thorough: Being thorough when providing information on business expenses and taking time to answer every question on tax documents may prove effective ways to mitigate the risks of an audit.
- Promote compliance: Experts also indicate that filing and paying business taxes by the initial due date may also help promote a positive compliance record and reduce the risks of further actions.
- Tax deductions: As the presence of excessive business deductions may also act as red flags that might trigger an audit, avoiding similar issues could also prove beneficial.
- Business losses: Business owners may also find it helpful to seek advice in making informed decisions about reporting net losses, as similar concerns may also increase the chances of a tax audit.
Experts also indicate that taking steps to ensure one files the proper types of tax paperwork and to accurately depict changes in expenses may also be helpful steps in reducing the chances of an audit.
Unfortunately, business tax audits are an example of a type of issue that many business owners might have to deal with at some point. While the idea of preparing for an audit can be a stressful concept, this isn’t something one must face alone, as there are attorneys who can help provide a person with much-needed insight in preparing for the process. An attorney can provide a client with guidance in preparing for an audit and assist him or her in navigating every stage of the process.