Blog

Top 4 Tips on Surviving an IRS Audit for Construction Businesses

Posted by admin on 20 June 2014 | 1 Comments

Tags: , , ,

Now that weather is getting nicer and temperatures are above seventy degrees, people are going to want to do more work on their homes. As people in the construction business this means your business will increase dramatically in the next few months. This is great news! However, this means more paperwork and a busier team and it’s important not to slack on the duties that are necessary.

Did you know that even though audit rates are decreasing the IRS is still paying close attention to small business owners and professions related to real estate? This means that as construction workers you have an increased chance of getting audited.

So it is important that you do everything by the book and don’t cut corners because you never know if the IRS will audit your company. But if you do get audited here are a few tips on what to do.

    1. Ask the IRS what you should bring to the audit. This prevents the scope of the audit to be expanded. If you only have what they need then other possible red flags can’t be investigated
    2. Don’t overtalk.  IRS agents are taught to manipulate the situation so that people talk more than they should. This could cause the person to talk too much and say something they didn’t mean to or say something that could be used against them.
    3. Ask for help. Taxpayers don’t always know if they should hire a tax professional to help them or not.  If you are feeling like doing this alone is too much then ask for a tax professional to help you, it’s even okay to hire one after the audit.
    4. Check the facts. We all know how confusing the tax code can be, even for people who are supposed to understand it fully. So instead of assuming everything the IRS agent says is correct, read the documents related to your specific audit. This will allow you to have an idea of what is going on as well as to know when something doesn't sounds quite right.


Hopefully you won’t be audited anytime soon, especially while construction businesses are getting busier, but in case you do follow these easy tips that will make your audit one of the easiest in IRS history.

Kate headshot 200x300Kate Hyland Mercer founded Business Concepts, Inc. in 2002 to serve small and medium sized companies progress successfully into the next stage of their business. Business Concepts, Inc. works with many businesses in various fields including contracting, banking and finance, legal professionals, and media and marketing. 

Post your comment

Comments

  • Good tips. I like your post. Thanks for sharing this kind of post.

    Posted by swetha, 13/08/2015 7:16am (2 years ago)

RSS feed for comments on this page | RSS feed for all comments