Going through an audit sucks. There are no other words to describe it. Getting audited can be very trying on you, your business and your family. An audit certainly is stressful but with preparation and professionalism you will conquer and get through it. That being said, the best way to overcome an audit is to avoid one completely. Sounds impossible right? Well actually it’s possible and I can prove it! Knowledge is power, the first thing you can do is learn why incorporating your business will greatly your chance of getting audited. Below please find the IRS data book from 2015. This page shows the audit percentages from the various tax returns filed in 2014. Focus on the asterisked tax returns.irs-data-book-2015
You will notice that the top starred tax returns are those of non-incorporated businesses (sole proprietorship’s). You will notice that approximately 2.5% of these tax returns are audited. This means that 2-3 out of every 100 tax returns were audited.
Conversely the asterisked tax return type at the bottom of the page is that of an S-corporation. You will notice that .4%. This means that 4 out of every 1,000 s-corporate tax returns were audited.
These are immense differences, and the best thing about it is that YOU can take advantage of this, so if you are ready to lower your chances of an audit contact The Florida Tax Guy today, our phone is 561-350-9278 or via email at firstname.lastname@example.org