Protecting Your Practice from Unexpected Tax Issues

Receiving an audit notice can be stressful, but with proper preparation, you can navigate the process smoothly. Understanding the common triggers and knowing how to respond minimizes financial risk.

1. Common Reasons Med Spas Get Audited

• High-income bracket scrutiny: Med Spas often fall into higher tax brackets, attracting IRS attention.
• Large deductions: Excessive business deductions without documentation raise red flags.
• Payroll inconsistencies: Issues with employee vs. contractor classifications can prompt audits.

2. Steps to Take If You Receive an IRS Notice

• Stay calm and review the notice: Understand what’s being requested.
• Gather all necessary documents: Keep detailed financial records.
• Seek professional representation: A tax expert can handle IRS negotiations on your behalf.

Conclusion:
Proactive tax planning reduces audit risks. In the event of an audit, expert representation ensures the best outcome for your practice.