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audit

Jenyss

LawnSite Member
Location
Cleveland, Ohio
Hello - we received notice from ohio jobs and family service that they are coming to our 'office ' ( our office is our 4th bedroom ) to audit. And listed several documents we need to have. We don't have all of them, most;y b/c we dont use them, like a petty cash journal , corporate minute book etc... Has anyone dealt with this? Any advice? We are a small ( 4 employee ) company. Some of these questions were laughable like do we own another company, list corporate officers etc...
 

ACA L&L

LawnSite Bronze Member
Location
Albuqueruqe NM
deal with it quickly and completly......get that paperwork, cove all your bases. If u need contact your tax acct or lawyer. They can deal with it alot easier and less stress for u. That couple hundred bucks u spend on acct will be well worth it.
 

whitebp1

LawnSite Member
Location
Collierville,TN
laugh now or laugh later it aint no laughing matter, i would contact an attourny right away if you dont have those items readily available otherwise your going to be walked all over... im not trying to be negative here- just letting you know some of those things you mentioned are normal business operating things... petty cash journal not so much but corpoate minute yeah, an attourney should be able to walk you through it with ease.
 

Runner

LawnSite Fanatic
Location
Flint, Michigan
many of the questions may be not applicable to you, and I wouldn't worry too much about that aspect. Are your 4 employees currently collecting unemployment? It sounds to me that this may be the likelihood the reason for them doing the audit.
 

zimmatic

LawnSite Senior Member
Location
Minnesota
being from Minnesota I dont know this ohio agency you talk about. However I do know you need to talk to your legal council andor professional accountant first. Then have those people talk to the govt for you. DO NOT let them into your office or have access to your computer. These items they want are just a conversation starter, and then they drill deeper, thus if they are at your office or at your computer they will want to know the answer now! Have them conduct their questions at your lawyers office or tax proffesionals office.
My father went through a sales tax audit. The state wanted to come to his home(where the office is) and review his "accounting" He said no obviously, but the information they requested in the initial request turned into a whole lot of things. In the end they just wanted a little money so they could run back to there boss and say my time and Job is worth employing me. He paid a small fine less than 1k but the state was @holes about it. How did he get audited. A company he did work for was way in the rears for sales tax. They got auditied. The guy let the state at his computer for 2 weeks. He got fined 125K then they pulled names out of his client list to go poke around at. or at least that is what we think cant confirm it though. There is so many diffrent tax rules, its a struggle every year to make sure you comply with them all.
 

nepatsfan

LawnSite Gold Member
Location
Franklin MA
forget about all the stuff they say you need. When they ask for a petty cash journel hand them an envelope filled with cash. Tell them that is their copy to keep. They will see that everything is in perfect order when they report back to the office.
 

AI Inc

LawnSite Fanatic
Location
Southern NH
many of the questions may be not applicable to you, and I wouldn't worry too much about that aspect. Are your 4 employees currently collecting unemployment? It sounds to me that this may be the likelihood the reason for them doing the audit.
That is exactly what they are looking for. To see if you have ever payed anyone as a sub incorrectly. Then they will want the unemployment money that was not payed for those " employees"
 
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