Preparing for a Potential Employment Tax Audit

IPB partners Tom Cryan and Spencer Walters recently wrote an article for Bloomberg Tax about the expected increase in IRS employment tax audits and what employers can do to prepare for them. In, "Employment Tax Audits Are Coming, So Businesses Must Prepare," they offer recommendations including conducting internal audits to help employers identify and correct employment tax, tax information reporting, fringe benefit, and executive compensation issues. Employment tax issues often involve multiple departments, and may not fall directly under the purview of of either tax or benefits, complicating oversight; identifying and correcting issues before an IRS audit can significantly reduce potential employment tax assessment and penalties. 

Tom and Spencer have worked with several clients conducting comprehensive on-site employment tax compliance reviews. They have also compiled a list of some of the issues they have seen most frequently in the employment tax, executive compensation, fringe benefit, and information reporting areas. In the course of these projects, they review and discuss U.S. employment tax, accountable plan, executive compensation, fringe benefit, and information reporting issues. Many clients have found that these reviews prove to be worthwhile and result in improved compliance. If you have questions about employment tax audits, or are interested in a review of your company's practice and compliance status, please contact any member of our team.