With travel and tourism being a global industry, many international operators have established businesses and bank accounts in the USA to facilitate trade. Likewise, many USA based tourism operators have offshore assets. What are the tax implications? How do you react if your business faces an Internal Revenue Services (IRS) audit?
IRS Audit: What you Need to Know
One of the things that worry business owners and taxpayers alike is an audit from the Internal Revenue Service (IRS). Receiving an IRS audit notice can be a significant cause for alarm and fear for any individual.
Think of it as being the financial and legal equivalent of you being tailed by cops as you walk several blocks downtown. An IRS audit can be a very stressful experience for someone to go through. Not to mention the significant amount of paperwork you need to go through, there is also the risk of hefty tax penalties and criminal charges. An IRS audit happens when the IRS needs to verify and confirm some details on a business or taxpayer’s tax return form and determine the accuracy of the information indicated therein.
Am I at Risk for an IRS Audit?
This is a question every good businessperson and taxpayer should keep in mind. It pays to be a bit paranoid when it comes to tax matters. Looking at how the IRS audit process works, it most likely happens to business ventures or taxpayers that have discrepancies, errors or fraudulent claims in their tax returns. As long as you steer clear of these dubious practices and you are transparent with your asset declarations, then you are relatively safe from an IRS audit. But then again, there could be circumstances beyond your control that might still put you in the crosshairs of an IRS audit, and you will need an IRS audit
IRS Audit: Who can Help You?
Going through an IRS audit is like navigating through dangerous financial and legal waters and being dragged by the current of technical and legal complexities. The reason why an IRS audit seems like an intimidating battle is due to the lack of knowledge of the auditee (the taxpayer) when it comes to the tax laws, documents, and requirements, that need to
But there is still hope! A dedicated and competent tax attorney can help you win this taxation battle. It goes without saying that you should seek legal help when there is something you don’t know about in the midst of an IRS audit. Do not fall victim to the fear of
Countering IRS audit risks only needs a dose of prevention. An honest and accurate declaration of tax returns is definitely the right way to go about it. It relieves you of worries and gives you peace of mind in your future dealings and transactions with the IRS. And of course, forewarned is definitely forearmed.
It pays to consult with a tax attorney on how to navigate the complex world of taxation. Don’t wait for an IRS audit to happen to you before you make a consultation. Rather, make that consultation now to prepare yourself if ever you find yourself in a tight legal spot with taxation matters.