An audit is a basic term in business and accounting, referring to a review of your business. Public companies have their public financial statements reviewed quarterly and annually. Most commonly, this word refers to an IRS Audit. The most feared part of tax enforcement, this is where a government forces you to prove out your claims, while an adversarial investigator challenges your actions.
This also includes the “letter audit,” where the IRS or State Revenue agency simply requests paperwork backing up something and then closes the issue. It can also include full blown tax reviews going back years looking for missing tax revenues.
Most of our clients have a service we call audit protection. For a low prepaid fee, we handle all routine matters of compliance and audits, up to a fixed number of hours. While the service helps our clients save money, it is primarily designed around giving people a peace of mind. By allowing us to respond to basic IRS inquiries without billing you, you aren’t tempted to handle them yourself and risk making a situation substantially worse.
Our primary goal is to give our clients peace of mind regarding their finances. One of the most important ways that we do that is with regulatory and tax compliance. My making accurate and timely filings, we can usually prevent an IRS inquiry from turning into a full audit. If the situation does escalate, having proper financials and books helps us get our clients through the situation quickly and with minimal business interruption.