Merger and acquisition process is thought to be a tedious, as this involves stringent auditing and financial procedures. Moreover, the strict procedure of tax compliance, tax planning and filing tax returns cover merger and acquisitions in Salt Lake City, as TannerCo.com explains.
An audit from the IRS is a bit of a complicated process. You should remember that there are some consequences when you falsify information about your tax returns; authorities consider this as fraud.
Here are some things you can do to avoid an audit during tax returns:
WORK WITH A PROFESSIONAL WHEN PREPARING YOUR TAX RETURNS
Tax law is complex; it might be hard for a normal individual to comprehend. This is the most likely reason that you may receive an audit. Fortunately, there are many professionals or firms willing to assist businesses with this matter.
MAKE SURE THERE IS A DOCUMENT FOR EVERY SOURCE OF INCOME
The first step in the auditing process involves the IRS adding up all of your deposits from both personal and business bank accounts. If there was more money going into the bank account than was previously declared, the IRS will have questions. They need to know where the funds came from, and whether they could be taxed. No matter what the source of the income, always keep a copy of the document that comes with it.
PROFESSIONAL ACCOUNTING SOFTWARE SHOULD BE USED
Using software won’t only make your accounting easier, but also help in improving your credibility to the agent. The software will assist you in tracking your income and expenses, as well as preparing your financial statements.
Once your tax refund is filed or once you have filed it, you could use an online monitor tool to track your returns. This can help you keep track of your refund.