Five Things You Should Be Ready To Defend In The Event Of An IRS Tax Audit
February 14, 2019 by Gregory Reed in Tax
With tax season in full swing, small business owners may be feeling some annual tax-related stress. How are the new tax regulations going to impact my business? Will I be facing a large tax bill this year? Will I be selected for an IRS tax audit?
On the bright side, the IRS audits less than 1% of all tax returns. However, since small businesses tend to make up a higher proportion of that 1%, here are five things that you should be ready to defend in the event of an IRS tax audit:
- Proof of business (as compared to a hobby)
- Paying reasonable salaries
- Classification of independent contractors vs. employees
- Proper documentation and classification of business meals and entertainment
- Completing and distributing tax forms on time
For more information about how to streamline small business taxes this season:
