There are two main audit areas for professional athletes – Residency and Unreimbursed Employee Business Expenses (also known as 2106 audits).
For residency audits, we will review the initial contact letter, correspond with the auditor regarding what items need to be reviewed, and guide our clients as to what types of documentation are acceptable. We will then review the documentation provided by our clients, organize it in preparation for the audit, and provide a cover page which summarizes the documentation we are providing. All of this goes a long way with auditors, which in turn helps our clients.
For 2106 audits, Unreimbursed Employee Business Expenses, we follow a similar approach as we do for residency audits. In addition to the services provided above, we can coordinate with our client’s sports team in obtaining a letter regarding the team’s reimbursement policy as well as come up with some creative ways for providing expense documentation.
At KROST, we have the knowledge and expertise in the athlete audit support area and will make sure our clients come out the very best given their situation.
In addition to audit support, we also provide a full suite of catered, industry-specific services including wealth management, integrated tax, and additional accounting services. » Learn more