My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

When The IRS Comes Calling

Do you have a plan if the IRS chooses to audit your business?
2 min read
Opinions expressed by Entrepreneur contributors are their own.

If the IRS selects your business to be audited, the best strategy is to cooperate-as quickly and efficiently as possible. Here are some other important steps to follow:

  • Hire a stand-in. Tax experts say it's best if you don't try to represent yourself. You can authorize an attorney, CPA or enrolled agent to represent you at the examination. Keep in mind that whomever you designate will need power of attorney to represent you.
  • Give yourself enough time to prepare. The IRS may try to pressure you into an early audit date, or an agent may even appear at your home or office and try to start the examination immediately. Don't let that happen. Tell them you need time to see your accountant and prepare. Set a date that gives you the time you need. That way, your accountant or attorney will have sufficient time to review your return and make sure you have the necessary receipts.
  • Don't volunteer information. If you decide to go it alone, answer only the questions asked. Provide only records that directly relate to the items questioned in your IRS notice to avoid opening yourself up to other areas of investigation.
  • Give them their space. If your business is selected for a field audit, be sure to give the IRS agent a work area that's set apart from employees. Select a "point person" in your business to deal with the auditor. This person should provide the necessary records, make copies and be a general contact for the auditor.

More from Entrepreneur

Brittney's a Certified Financial Planner who can help you manage your business and personal finances and navigate the ups and downs of starting a business.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur