IRS Tax Examinations & Hot Issues

Overview

Due to IRS issue-focused examinations, accounting and finance professionals need to understand what types of returns are selected for examination and ways to help clients survive an IRS audit with little or no change. As a result of issue-focused examinations, accounting and finance professionals must understand what the high-audit-risk area issues are and what the IRS is focusing on when a return is examined. In addition, because tax-related identity theft is a common issue for many taxpayers, it is critical to understand the procedures necessary to resolve this matter for their clients.

Learning Objectives:

• Understand the IRS process for selecting returns for examination.
• Identify the types of returns the IRS is examining.
• Understand the hot examination issues that the IRS is focusing on to help clients reduce their exposure to additional tax assessments.
• Determine if your client is a victim of tax-related identity theft and the procedures to use to resolve strategies for dealing with IRS examiners and presenting your clients' tax positions in the best light possible.

Major Topics:

• Coverage of the Inflation Reduction Act of 2022
• Criteria that the IRS uses to select returns for examination
• Vehicles, meals and virtual currency considerations
• Worker-classification determinations on who is an employee and who is an independent contractor
• S corporation officer’s reasonable compensation issues
• Responsibilities to pay the employment taxes when the business defaults
• Tax-related identity theft procedures