How does the process work during a tax audit?
September 12, 2023 | 50,00 EUR | answered by Ulrike Voss
Dear tax lawyer,
my name is David Bauer and I work as a self-employed entrepreneur in the IT industry. Over the past few years, I have steadily expanded my business and have seen correspondingly high revenues. However, I have recently learned that my company is facing a tax audit by the tax office. This news has greatly concerned me, as I have not had any experience with such an audit before.
I am worried that I may have made tax errors that could lead to unpleasant consequences. I am wondering about the procedure for a tax audit and what steps I should take as a business owner to best prepare myself for the audit.
Could you please explain to me what steps the tax office takes during a tax audit and how I can best prepare for it? Are there specific documents I should have ready or what information should I check in advance to avoid potential errors?
Furthermore, I am curious about the consequences of a tax irregularity and how I should respond in case of a identified misreporting. What options do I have in such a situation and what impact could this have on my business?
I thank you in advance for your support and advice on this matter.
Best regards,
David Bauer
Dear Mr. Bauer,
Thank you for your inquiry regarding the upcoming tax audit of your company. As a tax lawyer, I understand that such an audit may cause concern for you as a self-employed entrepreneur in the IT industry. It is important to prepare well to avoid potential mistakes and to assess the consequences of any tax irregularities.
Firstly, I would like to explain how the process of a tax audit typically unfolds. The tax office will review the tax returns and underlying documents of your company, checking the accuracy and completeness of your tax information. They may also appear unannounced on-site to inspect business premises and documents.
To prepare for the tax audit, it is important to have all relevant documents readily available. These may include income tax returns, sales tax returns, accounting records, bank statements, and contracts. It is crucial that these documents are kept in an orderly and complete manner to avoid potential sources of error.
If the tax office identifies any tax irregularities during the audit, this may lead to additional payments, interest, and possibly fines. In severe cases, a tax crime procedure may be initiated. In such a situation, it is advisable to promptly seek the assistance of an experienced tax attorney to protect your rights and develop the best defense strategy.
It is important to cooperate with the tax office and provide all necessary information. Adhere to legal requirements and ensure that your tax matters are correct and transparent. Open and honest communication with the tax office is particularly important in such a situation.
I hope this information will help you prepare for the upcoming tax audit. If you have any further questions or need assistance, I am at your disposal.
Best regards,
Ulrike Voss
