IRS Attorneys Audit Technique Guide – IRS focuses on attorney audits
Abstract: The IRS recently released an updated Attorneys Audit Technique Guide to help its examiners effectively audit attorneys. While no one enjoys being the subject of an audit, the guide provides some valuable insights into the areas auditors are likely to examine, which, in turn, can help law firms avoid costly missteps. This article summarizes the areas of interest that examiners may focus on, including segregated client trust accounts, deferred income, advanced client costs and employee misclassification. A short sidebar covers a nonexclusive list of documents that firms will need to supply to both expedite the audit process and demonstrate a commitment to transparency.