As scary as the auditing process is, there is a way for small business owners to combat the auditor. And that’s by arming yourself with knowledge, of course!
The IRS decides to audit by following a formula. They compare your return again industry “norms” and if a line on your return seems suspiciously different from industry standards, your return gets kicked up the chain until an auditor decides if its time to give you a call (or send you one of those ominous IRS letters.)
But are those industry standards? Choose your industry from the dropdown box below and find out.