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There is no reason to be afraid of an audit if you have been ethical and truthful in your accounting methods. However, it is best to be prepared for an audit to make sure that it runs smoothly. Different types of audits require different preparation methods. If a business is brought up for an audit by the IRS, there are several things you can do to prepare your business for audit. First, review the tax returns that are being audited. Make sure that you are ready to explain how you or your tax preparer came up with the figures in the return when you go into the audit.  If you don't know how your tax preparer came up with the figures, or you have any questions, you should contact your tax preparer prior to the audit for any clarification needed so that you are thoroughly prepared for the audit. Organizing records used to prepare your tax returns yearly is a great way to maintain proper accounting before an audit.  However, if you have not organized your records as you filed yea...

Because deadlines are strict, and penalties will be given to late tax payments, you should make sure that you do not put off your "tax day". You should definitely start preparing your income tax return well before April 15. Whether you are doing your own income tax return or you are getting the help of a certified public accountant or firm to prepare your income tax return, you should get a few things together before you begin or meet with the CPA. The main thing you will need for your income tax return is proof of the income you made and the taxes you paid in the previous year. That includes income made through employers, interest from accounts, dividends from investments, income made through self-employment, income made as a subcontractor, and any other income. Student loans and other types of loans may also be considered income for the purposes of income tax, as can winnings from a lottery, casino, or other contest. If you are unsure what can be considered as income for ta...