If you have ever wondered about the chances of your business being audited, you are not alone. If you are the sole proprietor, including an owner of a Single-Member LLC (SMLLC), of a business activity, the chance of being selected for audit by the IRS is 4.5 to 12 times higher than it is individuals without a business. Partnerships, corporations, and Multi-Member LLC (MMLLC) are also at higher risk.
In some cases, the mere act of inadvertently underreporting your revenue or having expenses on your business return that are on the IRS’s radar may trigger an audit. Your business entity can also be selected for audit by your state tax agency. In addition, states generally have an agreement with the IRS in sharing tax audit results.
With that being said, if you or someone you know has ever been audited, you are probably well aware of the fear, the anxiety, the time-consuming process, and the toll that it takes on an individual’s mind and body to go through the audit alone.
TaxAudit can handle an audit for you, whether you own a business as a sole proprietor or through a business entity. We recommend that every business owner sign up for our Small Business Audit Defense Membership for Corporations, Partnerships, or S-Corporations − or our Individual Audit Defense for Sole Proprietorships. We are here to help!