What You Should Know About Auditing – And Its Process – Here In The United States

We all pay taxes, it is simply a part of being a citizen here in the United States. On a personal level, of course, taxes are a must each and every year. But businesses and corporations need to pay taxes as well, and are also much more likely to undergo the process of an audit. Understanding taxes can be a difficult thing all across the board, but doing them correctly is absolutely crucial – especially from a legal standpoint.

Fortunately, corporate audit and assurance services have long been working to make sure that America corporations based here in the United States as well as in a number of other places throughout the world (such as in the country of China) are doing what they are supposed to be doing when it comes to their taxes, paying them accordingly, filing them accordingly, and anything else that might go along with it. These corporate audit and assurance services are busy every year, auditing various companies and performing various types of audits, from the SEO compliance audit to various other corporate audits.

And corporate audit and assurance services employ a great deal of people, as do other auditing services that can be found all throughout the country, even auditors for international tax services too. In fact, more than 1,300,000 people (very nearly 1,400,000 people, as a matter of fact) work in this field here in the United States alone. The need for auditors for corporate audit and assurance services and the like is a high one, there is certainly no getting around this fact. Many of these people that make up this number are also accountants, who can help companies, businesses, and individual people alike learn how to properly do their taxes and avoid any issues should some type of audit take place, especially in the case of something like a corporate audit as performed by one of the various corporate audit and assurance services here in the United States.

After all, accountants have been around for quite a long time, not just in the United States and all throughout the world. Hiring an accountant to provide business advisory services can be hugely helpful. Not only might such businesses be then able to avoid an audit, but even if an audit takes place they will then come out of it in the clear, something that is, of course, more than ideal as a result of any given audit conducted here in the United States.

But just how common are audits exactly and who is most likely to be the subject of any given type of audit? For starters, audits on individual people are actually, all things considered, quite rare indeed. In fact, individual tax payers reporting a total value of less than $200,000 in income over the course of the year have what amounts less than a 1% chance of being audited, as such taxpayers are only audited about .5% of the time.

Even small businesses are audited far less frequently than large businesses, as businesses with more than $20 million reported on a yearly basis actually had a 60% audit rate as seen in recent data gathered. In the typical small business with returns of less than $10 million on a yearly basis, the chances of undergoing and being subject to an audit were only just slightly higher than an individual person’s chance of being audited – only just .7%, still less than a full 1% chance.

However, a great deal of businesses (on the larger side of things) will still be audited on a yearly basis, simply due to the fact that so many businesses exist and so many tax returns are collected by the IRS on a yearly basis, as anyone who is working or has worked for corporate audit and assurance services can likely attest to with ease. In fact, the year of 2017 alone contained more than 1.1 million audited tax returns by the IRS, as nearly $3.5 trillion was collected over the course of that year in taxes and nearly $500 billion paid back in the form of tax returns.

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Laura

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