Audit Defense and Fine Reduction
What other firms will not touch.
Workers comp audits, sales tax audits, unemployment insurance audits — these can threaten the survival of your business. We have the experience to fight back, challenge incorrect findings, and reduce fines by thousands.
What to Do If You Receive an Audit Notice
Do Not Ignore It
Audit notices have deadlines. Ignoring them results in default assessments — the government assumes worst-case numbers and you lose your right to dispute.
Do Not Respond Without Help
Anything you say or submit can be used against you. Well-meaning but incorrect responses often make the situation worse. Let us handle communications.
Call Us Immediately
Bring us the notice. We will assess the situation, explain your options, and begin building your defense. Time matters — the sooner we start, the more leverage we have.
Audit Defense Services
Workers Compensation Audit Defense
Workers comp insurance carriers audit businesses annually to verify payroll classifications and amounts. Misclassifications, unreported subcontractors, and payroll discrepancies can result in massive additional premiums — sometimes tens of thousands of dollars. We review the audit findings, challenge incorrect classifications, and negotiate reductions.
Common targets: Contractors, restaurants, cleaning companies, any business with employees
What we do:
- ✓Review audit findings and identify overcharges
- ✓Challenge incorrect employee classifications
- ✓Document subcontractor relationships with proper certificates
- ✓Negotiate premium reductions with the carrier
- ✓Represent you in disputes and appeals
- ✓Prevent future audit problems with proper record-keeping
Unemployment Insurance (UI) Audit Defense
The NYS Department of Labor audits businesses to verify proper classification of workers. If the DOL determines your independent contractors are actually employees, you face back-owed unemployment taxes, penalties, and interest — potentially years of liability. We defend your classifications and negotiate settlements.
Common targets: Businesses using independent contractors or 1099 workers
What we do:
- ✓Review DOL audit notice and findings
- ✓Analyze worker classification under NYS standards
- ✓Prepare documentation supporting contractor status
- ✓Represent you in DOL hearings
- ✓Negotiate penalty reduction and payment plans
- ✓Restructure contractor relationships to prevent future issues
Sales Tax Audit + Fine Reduction
NYS Department of Taxation and Finance sales tax audits can go back three years or more. Auditors use statistical sampling and industry benchmarks to estimate unreported sales. Penalties include interest, civil penalties (up to 25%), and potential fraud penalties. We challenge their methodology and fight to reduce the assessment.
Common targets: Delis, gas stations, restaurants, retail businesses
What we do:
- ✓Review audit assessment and methodology
- ✓Challenge statistical sampling and estimation methods
- ✓Provide documentation to reduce estimated liability
- ✓Negotiate penalty and interest abatement
- ✓Represent you at conciliation conferences and hearings
- ✓Set up installment agreements if balance is owed
Industries We Defend
These industries face the highest audit rates in New York. If you operate in one of them, you need a team that knows what auditors look for.
Delis & Bodegas
Cash-heavy businesses are the top target for sales tax audits. Auditors use markup analysis and observation tests to estimate unreported sales. We challenge their methodology with your actual records.
Gas Stations
Gas station audits focus on fuel tax, sales tax on convenience store items, and workers comp classifications. The combination of multiple tax types makes these audits particularly complex and high-stakes.
Restaurants
Restaurants face workers comp audits (high employee turnover and misclassification), sales tax audits (tip reporting, catering), and UI audits (delivery driver classification). We have defended hundreds of restaurant owners.
Why Businesses Choose Us for Audit Defense
We Take What Others Refuse
Most accounting firms and insurance agencies will not touch audit defense. It is complex, time-consuming, and adversarial. We specialize in it.
Full-Picture Approach
Because we handle your insurance, tax, and payroll, we already have the records and context needed to build a strong defense. No scrambling to reconstruct years of data.
Results-Driven
We do not just respond to audits — we fight them. We challenge methodologies, dispute classifications, and negotiate aggressively. The goal is always to reduce your exposure.
Prevention Built In
After resolving your audit, we restructure your record-keeping and classifications to prevent the same issues from recurring. Better records mean lower audit risk.
Related Services
Insurance
Workers comp and general liability coverage from a broker who will defend you when the audit comes.
Tax Services
Proper tax filing reduces audit risk. Our tax team keeps your records audit-ready year-round.
Business Formation
The right entity structure can reduce your audit exposure. Start with proper setup.
Facing an Audit? Do Not Wait.
Every day you delay reduces your options. Call us now for an urgent consultation. We will review your notice and tell you exactly where you stand.