Possible Slander by Business Competition

[beetle]

Would like to start by saying, I hate lawsuits! I'm not a lawsuit kinda guy...BUT...over the last few months I've heard rumors about my competition visiting my clients and telling them that I am in trouble with the IRS and that I had to move out of state because my reputation is so bad. This obviously to steal my clients away. I no longer own my business. He also went on to brag that he had turned us in to the IRS. WELL...in June I received an audit notice. I've never been audited in my LIFE! I had a couple people make statements of what he said. Is this solid or do I let him continue? Would love your input.

Thanks.

[aaron]

If he is making false statements about your tax situation, or that you have moved out of state and thus cannot help your customers or potential customers, you have a possible defamation action. But your number one priority, having received a notice of audit, is getting through the audit with a favorable resolution.