New IRS audits: Is your firm a target?
Let your payroll folks know: The feds have put together another game of chance — with the grand-prize being an audit of your company’s tax returns.
This month, IRS says it’s finally launching its National Research Program (NRP) — three months after the original start date.
The NRP is an intense audit process — with IRS examiners going through tax returns line-by-line.
How does it affect your firm? The feds say that 2,000 employers will be selected at random for the audits — for each of the next three years. What’s more: There isn’t a thing firms can do to decrease their chances of being audited.
If the IRS does call your number, it’s best to be prepared. The feds will ask you to provide employment tax records, especially those related to:
- fringe benefits
- officers’ compensation
- expense reimbursement plans, and
- worker classification.
According to the IRS, they’re looking to gather info on the impact of employment tax noncompliance on the tax gap — to better understand its customer base.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
As you’re prepping to file Forms W-2 or Forms 1099 for TY 2023, you know it’s tough to avoid all errors. So, it helps to be pre...
Accounting firms face tougher fiduciary duties as the result of three new federal rules. The Securities & Exchange Commission (SEC) ...
Finance teams have always known expense fraud is a problem. What’s changed is the scale, the motivation, and the profile of who’...
The cost of being a federal contractor is going up for 2024 due to a minimum wage increase. There’s legal pushback in some parts of t...
A North Texas company made a very expensive mistake. It misclassified workers as contractors and didn’t pay them for overtime put in....
The IRS has started rolling out guidance on the One Big Beautiful Bill Act, which contains the no-tax-on-overtime provision and much more. ...
