MLR

IRS auditors zero in on small businesses

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Faris Fink, representing the Small Business/Self-Employed Division of the IRS, said in a recent presentation that the IRS is working to better train its small business auditors and do a better job of selecting small business returns for audit.

CFO Magazine reported on Fink’s presentation at the American Institute of Certified Public Accountants tax conference in early November. Fink referred to the fuel-tax reporting compliance project, which began in July 2012. The IRS is looking at over 1,000 tax returns, with 600 of those returns in the field right now for examination, the report said.

Next on the agenda is an effort to better train examiners to audit partnership returns, Fink said. Understanding how to audit partnerships “will be a point of emphasis for the next 12 months and, I guarantee you, beyond that.”