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
Further Reading
A federal district court overturned the overtime rule that would have raised the minimum salary level for exempt employees on January 1, 20...
Among the many provisions of the Secure 2.0 Act, several deal with the paperwork responsibilities that fall on retirement plans. The Sec...
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...
IRS has released 2026 mileage rates and other updates impacting employees who drive personal vehicles for work or employer-provided vehicle...
The Biden administration is planning to add another reporting requirement for publicly traded companies. This time it’s taxes paid to...
Companies with funds tied up in the recent bank collapses had to scramble to pay their employees on time. No one wants to go through that a...
