Bohemia, NY (PRWEB) December 13, 2013
Lawrence Teicher, founder of CFO Consulting Services, a CFO services company, responds to an article published by CFO.com, which explains that the IRS needs to improve small business audits.
According to the CFO.com article titled “IRS Needs Help to Improve Small-Business Audits, Official Says,” the Internal Revenue Service’s audit programs are not meant to give small business owners problems. However, the article says the audit process has become lengthy and overbearing to a point where it no longer serves its initial purpose.
Faris Fink, a representative for the Small Business/Self-Employed Division of the IRS is taking a step in the right direction by acknowledging the IRS has room for improvement. The article says that in early November at the American Institute of Certified Public Accountants tax conference, Fink said the IRS was using data collected by the National Research Program (NRP) to help educate IRS workers in hopes to improve the audit selection criteria. The expectation is that IRS auditors do a better job of weeding out problem businesses, meaning fewer audits.
In addition to the NRP’s input into the auditing process, Fink has also introduced “a series of virtual training sessions on partnerships” after realizing that recent hires do not have sufficient knowledge in said type of business. Fink said audit partnerships, “will be a point of emphasis for the next twelve months and, I guarantee you, beyond that. We’ve got to develop a short-term and long term training plan to put the right tools in our examiners’ hands so they are more capable and better at looking at flow-throughs and particularly partnerships.”
Lawrence Teicher of CFO Consulting Services says Fink’s programs are a step in the right direction for the IRS. “Small business owners everywhere cringe when they hear the term audit. It does not have to be this way. The IRS has become just another overbearing, hard to deal with government organization. Fink’s changes are undoubtedly steps towards a less hostile relationship between the IRS and small business, but there is still a long way to go.”
Teicher concludes that audits are a necessary process, but they need to be done more carefully and without burdening low risk small businesses that do not warrant being audited.
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.