The New IRS Employment Tax Audit Initiative: Strategies to Prepare for Audits Given Anticipated Tax and Compensation Targets

06/01/2010 01:00 p.m. - 02:50 p.m. EDT

Federal Tax

James E. Merritt and Edward L. Froelich

Edward L. Froelich and James E. Merritt


Christie Adams
(212) 336-4024

Over the last couple of months, the IRS has added teeth to its vow to crack down on employment tax non-compliance. The first audits in a three-year initiative have already started. This push could also extend into fringe benefits and executive compensation—and encourage states to act.
Large and small companies will be among 2,000 businesses audited each year as an outgrowth of the Service's National Research Program. Expect auditors to hone in on misclassification of independent contractors and inspect fringe benefits, Sect. 409A deferred compensation, and back-up withholding.
The audits are expected to be extremely detailed and time-consuming, with the potential to run concurrently with, or to precipitate, income tax audits or trigger a state employment tax audit, thanks to information-sharing. Tax professionals must thoroughly understand the IRS plan and prepare for it.
Listen as our panel of experienced federal tax advisors prepares you for tougher employment tax enforcement and audits, offering best practices for compliance reviews and audit planning.
To register, click here.

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