According to the IRS, 83% of U.S. taxpayers accurately report
their income and pay their taxes. That figure isn't so bad when
you compare it with Germany at 68%, Italy at 62%, or Greece at a
startling 50%. Nonetheless, the IRS audits around 0.8% of tax
returns each year. If you receive notice that you're being
audited, the first thing you should do is contact our
office.
There are several methods the IRS could use when auditing a
business, depending on the information they need and the type of
business being audited.
The IRS will use indirect methods if sufficient records are not
available to be used during the audits. These include analysis of
bank deposits, percentage of markup, and net worth method, among
others.
