Discussion in 'Business Operations' started by Jenyss, Feb 19, 2010.

  1. John from OH

    John from OH LawnSite Member
    Messages: 144

    I've been through several of these over the past 25 years. First off, they are random audits and nothing to fear. I assume you use a CPA to do your taxes, if not, you probably should. It will be some of the best money you spend. Have your CPA request a change of venue for the audit and have the audit at your CPA's office. This is more or less neutral territory and far less intimidating for you. Also, it will keep the auditor from going beyond what they are supposed to review and asking questions that push the envelope. Next, your CPA will tell you which records you need to bring for your specific situation. It helps to bring copies for the auditor as well. You should supply a copy of all the records to your CPA ahead of time so they can review them. You CPA should give you brief guidelines on how and what to answer. Be honest with the auditor. The good news, every audit I have been through has come out well. The auditors have always been polite and have suggested things to do to save me money. Best of luck and if you have any quesitons, pm me and I'll answer the best I can.
  2. Jenyss

    Jenyss LawnSite Member
    Messages: 22

    Hi GUys,

    Thank you all for the posts! I have been reading them all week. I contacted our tax accountant and am signing it over to him. He said that because we use Paychex ( a payroll company ) we have nothing to worry about. We will meet on their office, but they still have to do an office check the week before. I will post with results.
  3. Daily Lawn/Landscape

    Daily Lawn/Landscape LawnSite Senior Member
    Messages: 695

    An office check?
    Invite them into the cab of your truck, not into your house. Unless they have a warrant, do not let them into your house. (period) It will turn into a fishing expedition

  4. rockerchris

    rockerchris LawnSite Member
    Messages: 23

    My dad is a CMA (CPA equivalent in Canada). Anyways, he was telling about a sales tax audit they received while he was working at a Warehousing company.
    What they did was set up a desk at the end of the warehouse, which in February was below zero. You can guess how long that guy was there. No need to make them comfortable.
  5. wbw

    wbw LawnSite Fanatic
    Messages: 6,166

    Yep. That's what you want to do...piss them off.
    Posted via Mobile Device
  6. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,909

    Because they want to verify unemployment compensation tax compliance? That's the role ODJFS plays in this scenario.

    You can have the appointment at their office, you just have to bring all of the records with you.

    edit: If you haven't already, check out their web site. Of note:
  7. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Messages: 4,109

    and then expense it on your irs shortform as : lubricant
  8. XYZLawnPros

    XYZLawnPros LawnSite Senior Member
    Messages: 395

    Absolutely correct on the part about they have zero(paper) rights to
    enter your premises without your permission. Be cordial and upfront
    about it or have your accountant/lawyer tell them what is up.
  9. Patriot Services

    Patriot Services LawnSite Fanatic
    Messages: 14,492

    As with any audit you can provide them with the requested information or they will go with the usual and customary amounts. I promise those numbers they use will not be to your favor. They are not new to this and already know more about your business than you think.
    Posted via Mobile Device

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