Small Business Audits: Can Your Clients Survive an IRS Examination
Paul La Monaca CPA, MST
June 10, 2026
Session 1
Registration: 7:30 AM
Session 1 Begins: 8:00 AM
Session 1 Concludes: 10:40 AM
This presentation provides Tax Professionals with information needed to educate their small business clients about an IRS examination. The course stresses the importance of understanding what is and what is not an allowable business expense as well as how to determine what is an ordinary and necessary expense under the Internal Revenue Code §162.
In addition, the presentation will address the issues of proper reporting of compensation to employees, owners and independent contractors and the proper filing of information returns. The consequences of recharacterization of miscellaneous payments, compensation, and distributions to owners will be highlighted.
This course will discuss the proper substantiation for verifying deductions and the importance of good record keeping for tax purposes by addressing the following substantiation issues of §274 as to:
- The Amount of the expense.
- The Time and Date of the expenditure.
- The Business Purpose of the expense.
- The business relationship of the payee
This course will discuss the proper substantiation for verifying deductions and the importance of good record keeping for tax purposes. The course also discusses the §6662, 20% Accuracy-Related Penalty imposed on taxpayers for negligence for not keeping accurate books and records.
The course will address the Cohan Rule which could allow oral or written statements or other supporting evidence, if the taxpayer can make a reasonable approximation of the expenses, despite lack of documentation.
At the conclusion of this session, the participants will have a better working knowledge of the importance of substantiating business expense deductions and the requirements needed to support the taxpayer in an IRS audit. Participants will also attain a higher level of knowledge as to the audit procedures and understanding of the importance of keeping good accounting records. Participants will also have a better understanding of standard accounting procedures and standard operating procedures.
Official Registry Statement:
The National Society of Tax Professionals is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
CTEC Disclosure Statement:
The National Society of Tax Professionals has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual "continuing education" requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at www.ctec.org.
Event Administration Policies:
In Person Event/Course Refunds, Credits or Changes
- Refunds or future education credits are available if requested up to 7 days before the event begins.
- A $25 administrative fee will be charged for all course changes, including, refunds, cancellations and future education transfers.
- Future education credits expire one year from transfer.
- Refunds are no longer available once the Course Material PDF has been emailed.
Executive/Charter Member No Show Fees
- Executive and Charter members must provide at least seven (7) business days’ advance notice to cancel an in-person course. Failure to do so will result in a $150 no-show fee. Cancellation notice must be submitted by calling the NSTP office or emailing taxes@nstp.org; no other form of cancellation will be accepted.
Event/Course Registration
- Registrations must be received no later than 7 days prior to the beginning of the course. Registrations received after this date will be subject to a $35 late fee.
NSTP Cancels Event or Course
- NSTP reserves the right to cancel any program for circumstances that are not under direct control of NSTP. If a course or program is canceled, participants will be refunded 100% of their registration fee.
Walk-Ins
- We do not accept walk-in attendees. Payment must be received in advance of the class.
Guest Attendance Policy
- A course/event confirmation is required for entry into any NSTP program.
- Only paid registrants can attend seminars. In consideration of your fellow attendees, guests will need to depart before the session begins.
More Information
For more information regarding refund, cancellation, and complaint policies, please contact our offices at 1(800) 367-8130.
