From time to time, different Utah agencies choose to audit businesses in the state. Audits are conducted by a number of different state agencies looking into various different aspects of your businesses. They serve as a routine way for the agency to check and ensure your business, as a sample of the state’s businesses, is complying with its regulations.
For example, the Utah State Tax Commission may look into your financial records to ensure you’re paying taxes correctly. They’ll want to see that you’re not only paying income taxes, but also sales taxes and employment taxes that reflect your situation. If your business has cars or buildings, you may be subject to vehicle tax and property tax as well. Similarly, the Utah Labor Commission may check your employment records to ensure you’re carrying the correct Worker’s Compensation insurance on your team.
Why Do Audits Occur?
There are a number of reasons an agency may choose to audit your business. Audits may occur when the agency’s records indicate something is out of the parameters they’ve set as normal. They may also occur when someone complains about your conduct or business and the agency need respond. Finally, they may simply occur randomly as the agency chooses businesses to check to ensure operations are happening within the laws and regulations of Utah.
What to do if Notified about an Upcoming Audit
Audits are no reason to panic as they happen to businesses regularly, even if the audit occurs due to a consumer complaint or an expected issue. The first step to take when facing an audit is to ensure your business records are accurate and up to date. Business support professionals, from your accountant to your Utah business lawyer can help ensure your documentation is correct and clear. They can also help you organize your files so that you can quickly and easily respond to the auditor’s requests. Finally, if necessary, they can step in and help you respond to the auditor’s requests and serve as a go-between to facilitate the audit and, if any problems are found, help you negotiate a solution.
Business audits may occur at the beginning of a lawsuit against a state agency or during ongoing litigation. In addition to helping you handle your information in a way that makes the auditor’s work easy, you want to make sure you preserve everything necessary for trial. Having an experienced business litigation team on your side, like the team from Dunn Law Firm, is important if you are facing litigation. We can help you negotiate settlements, preserve evidence and potential causes of action, understand your rights, and more. Reach out to the Dunn Law Firm by calling (435) 628-5405 and set up a free consultation today.