The Internal Revenue Service (IRS) doesn’t require nonprofits to have independent audits, but that doesn’t mean your nonprofit never needs an audit. Some federal, state, and local government agencies require audits, as do some banks and foundations. Generally, the requirements relate to the nonprofit’s size or spending. When an Audit Is Required An independent audit […]
Tag: audit
5 Tips for Avoiding a Small-Business Audit
Just the words “IRS audit” are enough to make most people roll their eyes or groan in pure agony. More specifically, business owners in particular often fear being audited by the IRS. That said, there are numerous steps people can take when they are eager to mitigate the risks of being audited. Even though there […]
What To Do If Your Business Is Audited
So, you just found out your business is getting audited. Don’t panic! You can get through it. The first thing to check is whether it’s a real audit. The IRS emphasizes that it always initiates audits by mail. If you get a phone call or an email, it’s a fraud. Even if you’ve confirmed it’s […]
How to Navigate an Individual Tax Audit
While it is accurate to say that the IRS has audited significantly fewer people, less than 1% of individual tax returns are audited and the majority of audits nowadays are handled from a distance rather than in person, these changes do not mean that the IRS will never select you for an in-person audit of […]