Your Best Defense For The IRS

by | Jun 22, 2012 | Business And Finance

Business owners contact a professional Phoenix tax service for help with the tax portion of their accounting for various reasons. One is that the accounting resources used to prepare tax for submission is often concentrated at particular times of the year, generally quarterly and annually, and it is often most efficient to use professional services only during this time. Another reason is that tax accounting can be separated from the remainder of accounting, and a good strategy is to distribute each task to the service best qualified to perform the task. A third reason is to take advantage of a Phoenix tax service with years of experience, who has worked with many different types of clients in related industries, who can provide tax advice throughout the year in structuring finances in order to minimize the tax burden. However, some businesses use a Phoenix tax service for the sole purpose of providing the best defense against examination by the IRS.

Using a professional tax service to add credibility for tax submissions to the IRS can be worth the fees all by themselves. It significantly lowers the chance for an audit, which is an important goal for any business.

The majority of businesses that submit their taxes are left to the honor system. Only a small portion of businesses are audited to see if their records are appropriate. This is at least partly due to the complexity of examining every tax return. The resources needed to do this kind of scrutiny are cost prohibitive. For this reason, the IRS performs spot checks, in order to motivate all tax payers into doing their taxes both reliably and honestly. The IRS expects that some business tax records will be submitted erroneously each year. Most will have mistakes because of the complexity of the tax laws, especially in particular business situations. Unfortunately, some will consciously make mistakes to try to get away with a little extra money. These two situations are what the IRS hopes to prevent.

The problem is that once the IRS commits the resources to do an audit, they will be motivated to find things wrong with the business return, and will take a lot of your time to try to find those things. So, the best strategy for an audit can be to prevent an audit from happening altogether.

Contact a Phoenix Tax Service today in order to find how a professional tax service can lower your chances of an audit. Take advantage of the credentials of a Phoenix tax service in order to demonstrate to the IRS that you want to submit your taxes honestly and accurately.

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