Tax audit defense

Page 1 of 4

Preparing for Tax Audits: A Strategic Approach

Tax audits can be both time-consuming and resource-intensive, often requiring significant input from internal teams and external advisors. To mitigate the impact of an audit, it is essential to proactively understand the material tax risks associated with your organization. Adopting a risk-based approach provides visibility into relevant processes and controls, allowing you to identify both strengths and weaknesses. Conducting zero measurements—simulations of a tax audit—can help clarify these aspects, enabling you to pinpoint the evidence supporting your tax positions and ensuring that documentation is organized for easy access when needed (audit trail/workflow management).

Cultivating a transparent relationship with tax authorities can also expedite the resolution of any disputes.