written by:Lisa Richards Jan 2017 0 Comments
Register and attend our student housing software webinar to learn about the top 10 most popular student housing software features and benefits. Attendees automatically qualify to win our grand prize webinar giveaway (valued at $750).
The chances of your business every coming under the scrutiny of the IRS for a tax audit are pretty slim, but it does happen. In case it happens to your property management business, you want to make sure you’re prepared. To help, we’ve put together some tips to assist you, just in case you ever do get that business audit notice in the mail.
It can be a scary thing to get that audit notice, and you might be tempted to just contact them and get it over with. However, you don’t have to do that. You can take the time you need to make sure your records are in order, and if you postpone it, that usually works to your advantage.
It’s not always necessary for the IRS to come to your place of business to perform an audit. Go to them, if possible. At the very least, talk to your tax professional and find out what they suggest for you to do about the location.
When the IRS schedules an audit, they’re scheduling it for a particular year. They don’t need to see your tax returns from previous years, so don’t volunteer any information that’s not for audit year.
It’s best if you assume that you will probably end up owing something once the audit is complete, but that doesn’t mean you have to accept the final outcome. You can appeal the result of your audit, which might mean more conversations with the auditor or his or her manager. If you don’t reach a solution, you can appeal to the IRS or even go to tax court.
The law states that the IRS has three years after you file your tax return to audit you for any particular year. If you receive a notice for an audit and it’s been more than three years, you do not have to comply with their requests.
The best way to survive an IRS property management tax audit is to make sure you’re keeping excellent records on all of your accounts. We can help you with that, and our property management software can easily be tailored to meet the needs of your business. Contact us at PropertyBoss for more information.
As a property manager, you know how important it is for your new and existing tenants to get renters insurance, but the issue is that you need to find a way to communicate that with them. While you do your best to make sure your properties are always updated and up to code, that doesn’t … Continue reading The Power of Renters Insurance...read more
In a perfect world, when you reconcile your property management bank accounts, everything checks out with the bank. Your account statements align perfectly with what your accounting software states, and you can easily check that off your long list of things to do. We all know that’s not how it works. Reconciling your accounts is … Continue reading Property Management Tips: Reconciling Your Accounts...read more
Everything was sunshine and roses when your tenants moved in. The credit checks came back pretty clean, the employment and personal references checked out and you felt like you were making the right decision by signing a lease with them. Oh, how quickly things change. It wasn’t long before you began having issues with them. … Continue reading It’s Time to Evict: When and How to Remove Problem Tenants...read more
Never get behind. Subscribe to recieve PropertyBoss blog articles in your inbox