The Good and Bad of the IRS audit

Audits are an integral part of any business. But it is always recommended to be true and present a fair view of the business in order to avoid any interference from the Internal Revenue Service department. At the end of the IRS audit, the officer of IRS... More

Audits are an integral part of any business. But it is always recommended to be true and present a fair view of the business in order to avoid any interference from the Internal Revenue Service department. At the end of the IRS audit, the officer of IRS will conclude the problems and notify for the necessary actions to be taken. IRS audit results can be reconsidered in case the organization is not satisfied with it. A complete procedure is to be followed in this case. IRS will reconsider the application only after scrutinizing the required application form. Audit by the IRS may be conducted because of the following reasons: very low income of a very large organization in order to evade the tax liability, inadequacy of returns, very high fluctuations in income, private gains, presenting a very high value of income etc. Audit by the IRS may conclude for penalties on the defaulters depending upon the character of tax payment: • 20% penalty in case the amount of tax underpaid is ass Less