.net barcode sdk PART TWO The Sale and Financing of a Business in Software

Encoding QR Code in Software PART TWO The Sale and Financing of a Business

PART TWO The Sale and Financing of a Business
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Who s Who Now
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You are ably represented by any number of others, each playing their own role in the process The most significant are corporate staff members, accountants, attorneys, consultants, and valuators The IRS is represented by audit teams consisting of managers, coordinators, and team members, including valuation specialists Team coordinators are responsible for day-today administration of the audit Team members may include specialists in valuation, computer audit, financial products, and other areas The team may seek advice from technical advisers and counsel, among others, and the IRS may also contract with outside experts to assist at the audit, appeals, or litigation levels Ordinarily, however, the decision to hire an expert will be made only after it is determined that an IRS specialist is not available, due either to workload, urgency, or specific expertise You, the business owner, are doubtless the one person most interested in the outcome of the tax audit, and yet often you re the one who is least involved in the audit process While understandable, since you have a business to run and highly competent staff, representatives, and experts to assist you, I believe, in the interest of progress, that you should consider playing a greater role: expediting activities, identifying problems, and facilitating early resolution You can do this personally or, with equal effect, through the efforts of those other representatives
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There are two major problems a business owner can have a significant impact in solving The first problem is that the parties on each side do not work together closely enough The second is that the two teams do not work together closely enough The first problem is one of internal communication and work practices The second is more substantial It may require major cultural change and significant intervention in order to happen
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THE AUDIT PROCESS
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The modern audit process is, ideally, more a collaboration than an interrogation An audit is definitely more successful when
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CHAPTER 15 Valuation Controversy: An IRS Perspective
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there is a good working relationship between the parties Evidence of this includes excellent communications, a spirit of trust, and a commitment on both sides to enable the process to work in a timely, productive, and effective manner Once the IRS has introduced its team to the taxpayer and his or her representatives, the steps in the audit are consistent no matter what the type of return or issue is being examined Generally speaking, the IRS will conduct an initial review of the tax return and the issue It would be helpful for the taxpayer to assist in this process by explaining the process by which the return was prepared Next, the IRS will ask questions and request information, usually using a form such as the Information Document Request The most important thing the parties can accomplish at this step is to ensure a mutual understanding of the questions asked and information requested and to agree on an acceptable date by which it can be expected that the request will be fulfilled Regular status reports will enable both parties to stay on track with the process If either side encounters a delay, it would be most beneficial to have a meeting or discussion about the situation and, if necessary, arrive at a revised completion date This element of the process may be repeated several times during the course of the audit Once all the necessary information has been exchanged, the IRS will review and consider it, have further discussions with the taxpayer, and ultimately come to a conclusion as to the correctness of the item During this stage, effective communication continues to be essential Seek clarity in all discussions Ensure that both parties understand their respective conclusions Resolve differences quickly Do not hesitate to ask questions Once a conclusion has been reached, the IRS will share it with the taxpayer This can take place in a meeting, via written communication, or both It is a critical point in the audit process, an opportunity for seeking clarification and mutual understanding Questions and answers are more than appropriate (from both parties) Differences should be resolved It is most important to resolve any factual differences Ultimately, the parties may disagree about the conclusion, but at a minimum the facts should be agreed upon Preferably, the parties can reach
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