The first thing is to challenge the audit report to the auditor's supervisor. ?Some auditors come to amazing conclusions (I had one that wasn't familiar with the concept of a checking account or that expenses could be paid with a little piece of paper called a check. ?I've had several that didn't grasp that regardless of the amount of revenue taxable income was revenue minus expenses - "Your client had sales of $4 million dollars, so it's taxable income must have been at least $1 million.") ? If that doesn't result in a satisfactory resolution.
Answered on May 18th, 2015 at 5:43 AM