The key to surviving a tax audit -- and even coming out on top -- is not to panic, but prepare. Before meeting the auditor, you should thoroughly review the tax returns being audited. Be ready to explain how you, or your tax return preparer, came up with the figures. If you can't, then you may need to contact your tax preparer or a tax attorney.
Small businesses, especially independent contractors and sole proprietors, are audited more than their fair share. Ask yourself these questions to avoid some top audit triggers: Does your business handle a lot of cash?Did you write off auto expenses for your only car?If you have employees, are you filing payroll tax returns and making tax payments?If you hire people you call "independent contractors," are they really employees?
George M. Cohan is a Broadway legend--a hugely successful songwriter, singer, dancer, actor, playwright, theatrical producer, and director. One of his most famous songs is the classic "Give My Regards to Broadway." Among tax nerds, however, George M. Cohan is famous for something else--something all