How Prepared Are You for a Surprise IRS Audit?
An IRS audit can feel like a bolt from the blue—but it doesn’t have to send your organization into panic mode. The key to staying calm, compliant, and confident is preparation.
Many business owners believe an audit won’t happen to them. While audits are relatively rare, they do happen—and often without much warning. Whether triggered by discrepancies in filings, random selection, or red flags like excessive deductions or inconsistent income reporting, an audit can disrupt your operations and create unnecessary stress if your records aren't in order.
Preparation is More Than Just Good Recordkeeping
Being audit-ready means more than just keeping receipts. It means having systems in place that ensure your financial records are accurate, accessible, and aligned with current regulations. This includes:
Proper documentation for all income and expenses
Reconciled bank and credit card statements
Clear records of payroll, benefits, and tax filings
Entity structure and accounting practices that match your business operations
Red Flags the IRS Looks For
Certain patterns tend to attract IRS scrutiny. These include:
High income combined with unusually high deductions
Large charitable donations not consistent with income levels
Repeated losses from a business that resembles a hobby
Mismatched 1099s and W-2s
Use of round numbers in expense reporting
Understanding these triggers can help you avoid them—or at the very least, ensure you have proper support to explain them if questioned.
A Proactive Strategy Offers Peace of Mind
At Kaye Kendrick Enterprises, LLC, we help clients prepare for the unexpected. Through our CPA, audit, and controller services, we assess risk areas, develop audit response protocols, and ensure your financial documentation is airtight. We also provide ongoing coaching and consulting so that your team is educated and ready should the IRS come knocking.
Preparedness isn’t about paranoia—it’s about peace of mind. With the right partner, you can face any audit with clarity, confidence, and control.
Need help getting audit-ready? Let’s talk strategy.
