IRS Updated Audit Technique Guide for Exams of Consultants
The IRS has recently updated its audit technique guide for exams of independent consultants. With the explosive growth of the consulting industry over the past decade, especially here in Silicon Valley among tech companies, the IRS is now focusing its efforts more closely on these types of audits.
Consultants tend not to have the proper internal controls in place that customarily come with more traditional businesses, and the IRS is actively pursuing a more aggressive audit strategy with these examinations. Key areas of focus include:
- Internal controls
- Shifting/Assignment of Income
- Bartering
- Travel
- Meals and Entertainment
Contact your LMGW advisor for more details on how to be prepared if you are targeted for examination.
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