Feds plan heap of random audits in early 2010
Beginning in February, 6,000 random (unlucky) companies will start getting the IRS version of Happy New Year’s wishes: a notice they’re going to be audited over employment taxes.
While agents will be looking for an array of violations, they’re really targeting Form 1099 independent contractors who should be classified as regular employees.
And firms who are caught violating this are likely to receive hefty back tax bills and sizable fines.
IRS agents are also hoping to sniff out tax rule violations for exec pay and fringe benefits.
The random nature of these audits includes all companies — regular C corporations, S corps, partnerships, limited liability companies (LLCs), etc. — across all industry types.
According to the IRS’s chief of employment tax operations in the Small Business/Self-Employed Division, John Tuzynski, the audits will be conducted based on Form 941 and then they will work backward.
In addition to sterling documentation, doing an internal audit in the targeted areas may help ensure A/P and Payroll are thoroughly prepared should the IRS come knocking.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
Further Reading
For employees on reduced schedule FMLA leave, 12 workweeks will get converted into days, hours or minutes. But that can trip up employers, ...
IRS has given employers two extra years to implement a Secure 2.0 Act provision that’s bringing tax changes for certain retirement pl...
Mid-year minimum wage increases catch more payroll teams off guard than January changes do. Several state, local and industry-specific mini...
Most state withholding tables coincide with the start of the calendar year. But mid-year adjustments happen too, and they can catch payroll...
California employers that repeatedly miss required pay data reports could face a fivefold increase in maximum financial penalties under a n...
Does dual-role scheduling put your overtime compliance at risk? A new DOL opinion letter says it depends on the specific facts of the arran...
