What should I do when a tax auditor comes to my company?
The visit of a Tax Auditor to your company is a crucial moment, often filled with doubts about the appropriate procedures. With that in mind, we're here to offer some valuable guidance on how to behave when you receive a visit from an auditor.
Is it important to create a private environment to receive a Tax Auditor?
When welcoming the Tax Auditor to your company, it is essential to ensure a private space for the meeting. Avoid embarrassment in front of clients and employees by conducting the conversation in a private setting. Choose an appropriate room or location where you or a designated representative can discuss the issues discreetly.
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Is it important to have a trusted representative for the meeting with the Tax Auditor?
For the most efficient approach when welcoming a Tax Auditor to your company, assign a trusted person to lead the interaction. This person could be you or an experienced member of staff with solid knowledge of the company's tax affairs, in collaboration with your trusted accountant or tax lawyer. Make sure you get the tax professional's authorization so that they can discuss the issues directly with the accountant, if necessary. Having someone with prior knowledge of the company's tax affairs is essential to ensure effective communication during the tax auditor's visit.
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Should I ask for identification and the reason for the Tax Auditor's visit?
When welcoming the Tax Auditor to your company, it is crucial to ask for their official identification and question the purpose of their visit. This step is fundamental to understanding the nature of the inspection and cooperating effectively. For example, the tax inspector may be conducting an audit related to the compliance of the company's labor documents, a state inspection linked to the purchase and sale of goods, or even a municipal inspection to verify service operations.
the company's labor documents, state inspections related to the purchase and sale of goods, or even municipal inspections to check the provision of services.
It is important to note that the inspector must always present a subpoena to begin the inspection and provide a written request detailing the information required for their investigation. As part of best practice, you can check the validity of the summons on federal, state and in some cases municipal portals to confirm its authenticity. Having someone with basic knowledge of the company's tax issues is crucial to conducting this process confidently and efficiently.
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What if I get nervous during the Tax Auditor's visit?
When receiving the Tax Auditor, it is essential to remain calm and composed. All requests must be made in writing and with defined deadlines. It is therefore advisable to enlist the support of an accountant and/or lawyer at this time. Remember that, in the event of an assessment, you will have the opportunity to defend yourself.
It is important to note that there are situations of false inspections, even with apparently legitimate identification and summonses. Often, these scams involve requests for advantages during the service. So be cautious and always seek advice from your accountant. Don't fall for scams and protect your company's interests responsibly.
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Can I request a deadline for delivery of the documents?
When dealing with a tax auditor, it is not mandatory to provide all documents immediately. If you are in doubt about whether you need to hand over a specific document and you don't have access to your accountant, it is advisable to request in writing a reasonable period of time in which to submit the documentation.
Remember that, in cases of assessment, you will have the opportunity to include additional documents as part of the contestation process both at the administrative level and, if necessary, in court. Therefore, requesting a deadline for the submission of documents can help ensure that you provide accurate and complete information within the stipulated timeframe, in accordance with the applicable tax regulations.
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Should I file the documents with the tax auditor?
It is crucial to deliver all the documents requested to the Tax Auditor using a formal protocol. This delivery protocol plays a key role, as it can serve as proof that the documentation has been provided, in the event that later questions arise in the infraction notice regarding the company's absence or refusal to provide mandatory documents. Make sure that the protocol includes details such as the date, time and signature of the tax auditor or a company representative, to keep a clear and reliable record of the delivery of the documents. This can help avoid future problems and ensure that the company complies with its tax obligations.
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Conclusion
When a tax auditor visits your company, it is essential to follow this set of good practices to ensure an efficient interaction and protect the interests of your business.
By following these guidelines, you will be prepared to face a tax audit with confidence and responsibility. Remember that transparent collaboration with the tax authorities is essential, while protecting the interests of your business. Stay informed and always consult an experienced professional for additional guidance on tax issues.
Protect your assets and ensure the integrity of your processes with the highest standards of quality and ethics in every assessment. A CLM Controller offers a comprehensive approach that analyzes your numbers, documents, operational, financial and compliance risks, providing practical recommendations to improve efficiency and mitigate vulnerabilities.
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