When IRS comes knocking, it’s in your best interest to be as cooperative as possible. But it’s important not to give auditors too much without being asked for it.
In fact, many smaller companies give the IRS too much info, which ultimately drags the audit process on for longer than it has to be.
That’s according to the American Institute of Certified Public Accountants (AICPA).
Small companies that rely on manual finance processes have a more difficult time picking out the specific info IRS wants. As a result, many end up giving the feds more than they actually need (e.g., details of transactions outside of the audit period, vendor lists, etc.)
To help remedy the situation, the AICPA has teamed up with the IRS to create guidance for businesses on submitting more specific audit info.