IRS Launches New Audit Initiative-How Must You Prepare

The IRS has launched a sweeping audit initiative dubbed the “Employment Tax National Research Project”—the IRS’ largest targeted audit initiative in more than 25 years.  The IRS will conduct 6,000 in-depth payroll tax examinations over the next three years.  The broad-based payroll tax audits actually target independent contractor, fringe benefit, expense reimbursement, and executive compensation benefits issues, as well as payroll tax issues.

All employers must be prepared since these audits are not targeting specific sizes, types or locations of taxpayers.  In fact, the audits are intended to be a representative cross-section of taxpayers and will gather information to be used in future audits of all taxpayers after this “research” is concluded.

 

The audit initiative’s goal is to gather information on compliance and enhance revenue collection to close the tax gap.  Each audit promises to be thorough, even if the IRS knows (i) the employer is fully compliant on the targeted issues and (ii) that no revenues will be collected.

 

This 90-minute interactive audio conference will discuss both the targeted taxpayers, as well as how to prepare for a potential audit in case your company is targeted.

Learning Points and Questions To Be Answered:

• What fringe benefits and executive compensation issues will be targeted?
• How will the audits impact your independent contractor relationships?
• Will you need to modify your fringe benefit, payroll practices and independent contractor relationships?
• How to prepare to mitigate the effects of an audit?
• What will the audit experience be like?
• What documentation will the IRS request?
• How to interact with auditors?
• What lessons to learn from the present wave of audits? 
• Should your company be concerned even if it is not one of the targeted employers? 

Plus -- you'll get the chance to ask our expert from the country’s leading payroll and fringe benefits practice your own questions prior to the audio conference, as well as during the live Q&A session following the presentation!

Attendees Who Will Benefit From This Audio Conference Include:

• Employee benefits professionals
• Payroll administrators
• Human Resource Managers
• Corporate Counsel
• Finance Department personnel
• Tax Department personnel
• Internal audit and accounting functions

David Fuller
David Fuller is a partner in the tax department in McDermott, Will & Emery's Washington, D.C., office. Mr. Fuller's primary practice areas are employment tax, fringe benefits, employee benefits and contingent workforce matters. Mr. Fuller is a graduate of Anderson University, the University of Cincinnati College of Law and New York University School of Law. From 1990 to 1995, Mr. Fuller served in the Internal Revenue Service Office of the Associate Chief Counsel-Employee Benefits and Exempt Organizations (EBEO), and from 1992 to 1995 was Assistant Chief of Branch 2 in EBEO. Mr. Fuller also served as an attorney-advisor to the Hon. Perry Shields of the U.S. Tax Court. He is a frequent seminar speaker and writer on issues involving fringe benefits, employment taxes and the contingent workforce. David Fuller is contributing editor of Employer's Guide to Fringe Benefit Rules and Employer's Handbook: Complying With IRS Employee Benefit Rules.