IRS Releases Updated Publication on Employment Tax Audits

The IRS has released an updated version of Publication 5146 (Employment Tax Returns: Examinations and Appeal Rights). Among other things, the publication identifies common employment tax audit triggers, such as incorrect amounts detected by computer programs and information from compliance projects. The publication also explains where the IRS looks for information once an audit begins. In general, the IRS is authorized to contact neighbors, banks, employers, employees, or independent contractors once an audit commences. In addition, the publication features coverage of relief provisions that may apply if the IRS determines an employment tax deficiency. The revised publication can be found at www.irs.gov/pub/irs-pdf/p5146.pdf .