IRS Business, Payroll – IRS Tax Audits

 
One of the new hot button topics around the Internal Revenue Service are the IRS business and payroll tax audits specifically targeting the “worker classification issues.”
Both the state and the federal government know that they are losing millions and millions of dollars here because of unreported and misclassified of employees.
As a result they are launching 6000 new investigations regarding business and payroll tax audits alone.
The Internal Revenue Service have special groups of agents that specifically target payroll tax audits.
They are trained to look for any problems or concerns, tax abuses or criminal fraud in regarding payroll taxes.
If you have any concerns over being  under tax audit by the Internal Revenue Service for business or payroll taxes. contact us today.
We are A+ rated by the Better Business Bureau and have been in practice right here in South Florida since 1982.
We have 206 years of professional tax experience and are comprised of tax attorneys, CPAs and former IRS agents, managers and tax instructors.
 
 

Worker classification

Worker classification enforcement is a top priority for the IRS and state labor agencies. The IRS launched a new audit initiative to audit 6,000 businesses for worker classification.
Taxpayers and businesses may be at risk no matter the size of their business!
The IRS needs money and EVERYONE is fair game to the IRS and state labor agencies. Failure to plan can be extremely costly and in some cases it can cause a business to close its doors.
 
 

Documents Requested by IRS for a Worker Classification Examination

 
 
The typical Initial Information Document Request (IDR) will include the following:
 

•  Copies of the following returns/forms for the agent’s case file:

• Form 940 for prior years, exam year, and subsequent years.

• Form 941 for each quarter in prior years, exam year, and subsequent years.

• State unemployment tax returns for each quarter for prior years, exam year, and subsequent years.

• Form 1096 and Forms 1099 for prior years, exam year, and subsequent years.

• Forms W-2, W-2C, W-3, and W-3C for prior years, exam year, and subsequent years.

• Forms W-4 if any were completed by workers.

• Forms W-9 obtained from workers.

Other Documents that are normally requested

 
 
1. Payroll Journal for exam year (including work papers reconciling it to the employment tax returns).
2.  Cash Disbursements Journal for exam year.
3.  General Journal for exam year including any adjusting entries.
4. Trial Balance for exam year.
5. Copy of the prior years’ federal audit reports (if applicable).
6. Copies of the contracts between the company and its workers.
7.  Additional documentation may be requested.
 
Contact us today regarding an IRS business or payroll tax audit. We have practice in South Florida since 1982 and tax experts for business and payroll tax audits. Come by and see us for an initial contact consultation. We are the friendly and affordable tax firm.
 
 

IRS Business, Payroll – IRS Tax Audits – Ft.Lauderdale, Miami – Affordable Tax Audit Experts