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.
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