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Find out how to avoid a tax audit as a small business owner Learn what might trigger a small business tax audit and how you can reduce your risk BUSINESS LICENSE TAX AUDIT PROGRAM REPORT BUSINESS LICENSE TAX AUDIT PROGRAM REPORT For the Fiscal Year Ended June 30, 2001 Table of Contents Page No INTRODUCTION A Purpose and Objectives

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For example, closing a quarry in a particular location, bankruptcy or the dissolution of the business may trigger an audit Small quarry operations may want to consider forming a corporation Sole proprietors are audited more frequently than small business corporations (including C corporations, S corporations and limited liability companies)

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11 hours ago · Some business owners will grant their employees’ higher salaries, so that they can claim it as a business expense and deduct it from their taxes Unfortunately, the IRS looks for these tactics and if you are spotted it could open your business up for a tax audit

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The IRS can audit returns up to three years old Inaccuracies could lead to penalty charges: 20% of the disallowed amount for filing an “erroneous claim for a refund or credit,” the IRS stated, or $5,000 if the tax return was deemed “frivolous,” where there isn’t enough …

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