IRS employment exams: Will your construction company pass the test?

Description

Abstract: Recently, the IRS launched an audit program that focuses on employment tax issues. As part of a National Research Project (NRP), the IRS will randomly select approximately 6,000 employers over the next three years for detailed employment tax examinations. The IRS offers few details about the specific issues it plans to probe, but it’s expected that some of the main employment tax issues NRP audits will target include worker classification, officer compensation and reimbursed expenses. A sidebar to this article discusses the Davis-Bacon Act, a federal law that requires contractors to pay a “prevailing wage” on most federal projects.