Tax Investigations Are An Uneven Match Between Small Business And The Tax Inspector

The essential first step to be taken by a small business un regard to a tax inspection happens long before that small business is advised a tax enquiry is about to take place. That first step is to obtain and retain receipts and third party evidence for every sale and purchase and maintain accurate accounting records.

A solid system of bookkeeping accounts provides the basis to defend any tax investigation. The fact that any questions asked by the tax authority can be explained with real financial paperwork has the effect of giving the tax inspector confidence that the accounts and tax calculations are accurate.

Despite the best intentions of a small business the tax enquiry that small business faces is undoubtedly antax services investigation between a businessman naive in the thousands of statutes and taxation regulations against a professional tax inspector trained and experienced in where to find the loopholes. The match is akin to a schoolboy football team that has never played before taking on a professional side of league status who train and play every day.

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