Hello Professor I am a small business owner. My company is undergoing sales tax audit. Even though I believe that we have complied with all the tax regulations but there are still chances that we may experience financial losses due to additional taxes along with penalties as a result of the audit outcome. We are trying to obtain a business loan from a bank and they request financials of our company. My question is whether I have to disclose this circumstances to the bank. What happens if I don't say anything about this audit?
3:47 correct term is “reasonably possible”…even remote remote contingencies are “possible”
Source please
Hello Professor
I am a small business owner. My company is undergoing sales tax audit. Even though I believe that we have complied with all the tax regulations but there are still chances that we may experience financial losses due to additional taxes along with penalties as a result of the audit outcome. We are trying to obtain a business loan from a bank and they request financials of our company. My question is whether I have to disclose this circumstances to the bank. What happens if I don't say anything about this audit?