IRS Audits

The Audits are Coming
Starting November, the IRS National Research Program (NRP) will conduct detailed employment tax examinations of certain taxpayers. The selection process for an NRP audit is determined based on a statistical sample. It does not necessarily mean that an employer has incorrectly filed a return. The program will last for three years. Although the IRS may look at any line on an employment tax return during the examination, it will primarily focus on worker classification (employee vs. independent contractor), fringe benefits, officer's compensation, and reimbursed expenses. This study serves some of the tax gap concerns listed in the Government Accountability Office’s Report to Senate Finance in January 2009.