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A small business blog featuring tips to help entrepreneurs succeed in the small business world. Topics include family business, human resources, marketing, money, networking, operations, ownership, startup, taxes and technology.
What IRS Auditors Look For

As an entrepreneur, you may have or know someone who has been audited by the IRS. If an audit is in your future, stay calm and understand what the auditor will be looking for…

1) Did you report all of your business sales or receipts?
2) Did you write off personal living costs as business expenses?
3) Does your lifestyle square with your reported income?
4) Did you take cash or otherwise divert income without declaring it?
5) Did you write off personal auto expenses as business?
6) Did you claim personal costs as business expenses?
7) Are you filing payroll tax and making tax deposits for employees?
8) If you hire people you call “independent contractors,” are they really employees?

What Auditors Look for When Examining a Business

Recommended Reading:

Top 20 Tips for Surviving an Audit
How to Reduce the Chance of an Audit
Audit Technique Guides by Industry

Related Small Business Buzz Posts:
Independent Contractors
IRS Audit Triggers
A New Way for Employees to Get Paid
The Right Way to Write-Off Business Expenses (Part 1)
Last Minute Tax Tips

By Chris Brunner
Friday, October 12th, 2018 @ 12:10 AM CDT

Taxes |