Even if you think the Internal Revenue Service would never come knocking on your company’s door, you might want to prepare as if it would. Why?
The IRS just announced it will launch a major employment tax audit initiative.
It’s planning 6,000 random audits in the next three years, starting this November.
3 areas to check
As for which bases you want covered, there are three specific targets the IRS has identified:
- employee fringe benefits
- executive pay, and
- independent contractor classifications.
You still have a few months before the audits begin.
Now’s the time to make sure your company is not only in compliance, but has the proper paper trail to support all decisions.
It couldn’t hurt to perform a “mock audit” of these areas to see if your company’s vulnerable.
That can save you from having to open your wallet too wide if the IRS does pay you a visit.