Chances of an IRS audit go up

The Internal Revenue Service announced it’s going to increase the number of business audits. And here’s the kicker: It’s because the agency says it needs a little practice at the task. The IRS just announced it’s rolling out its first National Research Program (NRP) in about 15 years this November. The agency says the reason for the program is to:

  • improve agency compliance efforts, and
  • better use existing resources.

For employers, this means a much greater chance of being audited over the next three years, because up to 2,000 companies could end up in the NRP over each of the next three years, IRS’s Anita Bartels told attendees of the American Payroll Association’s Annual Congress.

The selection process, which is already underway, is based on a statistical sample.

Rest assured, just because your firm gets audited doesn’t mean it did something wrong (e.g., file an incorrect return). Still, it can’t hurt to review now the four areas IRS says its examinations will focus on: worker classification, fringe benefits, nonfilers and officer’s/directors compensation (especially S corporations).

0 thoughts on “Chances of an IRS audit go up”

  1. Does anyone believe it when a governmental agency makes a statement like this? Well, I guess if 53% of the population voted for an incompetent, unexperienced, community advisor activist with marxist ties – they probably believe this article.

  2. I don’t agree with everything in this post, but you do make some very good points. I’m very interested in this subject matter and I myself do alot of research as well. Either way it was a well thoughtout and nice read so I figured I would leave you a comment. Feel free to check out my website sometime and let me know what you think.

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