We learned recently at TaxMasters, Inc. (TAXS) that more tax audits are on the horizon. With the current tax gap weighing heavily on the IRS, agents are looking for revenue wherever they can find it. IRS audits are always a source of heartburn for the taxpayer being audited, but when a business gets audited, the potential for disaster threatens not just one person, but every person who depends on that business for income, products, and services. If your business is facing an audit, TaxMasters offers the tax audit help you need.

Random Employment Tax Audits Going Up 33%

According to reports in The Kiplinger Tax Letter, the IRS will increase the number of random employment tax audits 33 percent over the next three years. The IRS hopes this 33 percent increase in random employment tax audits will help them collect additional revenue and update their estimates of the tax gap. The first audits are scheduled to get under way in November.

What the IRS is Looking For

Reportedly, IRS agents will be looking for employers that are violating worker classification rules and that abuse the tax rules for executive compensation and employee fringe benefits. The IRS is also reported to be looking for S corporations that pay their owners meager or non-existent salaries, which allows a corporation to pass profits through to its shareholders as dividends to save on payroll taxes. In other words, if your company is engaged in issuing 1099s instead of W2s for fulltime employees, offering executive bonuses, providing cell phones to employees, or passing out high dividends, look out. Make sure you work with a qualified tax preparer to put together all the information you need to support your case. If you don’t have that information at hand, you may be in line for a serious IRS audit.

Finding Tax Audit Help

If you are one of the unfortunate companies to be selected for a random employment tax audit or any other IRS audit, you may need some help. TaxMasters has a team of audit professionals standing by ready to provide the top-notch tax audit help you will need to face an IRS audit. Understand that any time the IRS amends a return or sends you a change notice, that constitutes an audit. That means you have the right to challenge the IRS audit findings. If you have been hit with an unfair or inaccurate assessment because of an audit, you need to contact us today.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax relief teams in the tax representation business. Patrick Cox and Tax Masters are located in Houston, Texas.