We’ve been looking in recent posts at the various tax obligations sole proprietors need to manage in their business operations. One of the ways sole proprietors quickly learn the importance of their tax obligations is by facing an Internal Revenue Service audit. When a sole proprietor faces a tax audit, working with an experienced attorney can help ensure the sole proprietor handles the process as gracefully as possible.
In our last post, we mentioned that many Internal Revenue Service audits of sole proprietorships involve taxpayers who, rather than intending to skirt their tax obligations, simply didn’t act carefully enough to be in full compliance with the law. Here, we wanted to continue that discussion by looking at some of these obligations.