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 UJET
Webinars
Provided by Yooz
Further Reading
Time to update your systems: SSA has announced the 2026 Social Security taxable wage base. Next year’s number will increase to $184,50...
Late or slow payments continue to stall progress for today’s finance teams. These delays often stem from large organizations renegotiatin...
As finance and HR leaders develop 2026 salary budgets, errors in payroll execution can quickly undermine the impact of planned pay raises. ...
The IRS summarized several tax provisions of the One Big Beautiful Bill Act (OBBBA) in the 2026 version of Publication 15. Publication 1...
How much will employers have to pay for any penalties related to tax year 2023 forms, including W-2s and other information returns? Weâ€...
An Excel database is perfect for organizing — and clearly seeing — financial data. A database includes a series of records in r...
