Do they still do audits on businesses that are closed? We closed beginning of 2007, and they are auditing 2005---anyone know?
2007-11-23 07:21:15 · 4 answers · asked by Anonymous in Business & Finance ➔ Small Business
We didn't make a profit at all, actually a loss...
2007-11-23 07:39:57 · update #1
Yes, especially if your business reported revenue for that year.
2007-11-23 07:26:01 · answer #1 · answered by LUCKY 4 · 0⤊ 0⤋
They can go back 7 years but usually only look at the last two or three. Get hold of your tax preparer and have them give the IRS the info needed. Usually there's only one question they're looking at, if you act suspicious they open the file and do a more extended look at you.
Even if you closed, they can still ask about deductions and income. Most likely it's an easy question though, and nothing raising a red flag. Give them the answer to the question and they'll most likely be ok with that.
2007-11-23 22:22:34 · answer #2 · answered by Elaine M 7 · 0⤊ 0⤋
yep. they sure can. In fact, I do believe they can go back even more then five years to review but only audit up to five years. It stands out especially if you made a larger profit and close a year later.
get a good accountant.
2007-11-23 15:31:55 · answer #3 · answered by j13p 2 · 0⤊ 0⤋
They can go back up to five years and seven years in some cases for auditing purposes.
2007-11-23 15:27:10 · answer #4 · answered by C G M 2 · 0⤊ 0⤋