Washington -- The Internal Revenue Service said it plans to increase the number of audits performed on corporate executives with a particular emphasis on examining executive perks.
The IRS said it began dissecting corporate compensation levels last year following a marked growth in executive perks and subsequently audited 24 sample companies to detect any breaches of corporate compensation.
That study led the IRS to look into some corporate tax returns and discovered that some hadn't even filed returns.
"We did a quick check on returns and filing patterns, and we were surprised at the number who were not filing tax returns," Keith Jones, director of IRS field specialists told several news agencies.
Officials at the IRS also pointed to a total of eight other areas in which auditors could probe for potential abuses including deferred compensation packages, fringe benefits such as personal use of airplanes and vacation homes and “golden parachutes.”
However, among the most scrutinized corporate perks will be stock options.
The service said that in addition to boosting the number of executive audits, IRS agents would also be trained in new procedures in examining tax returns.
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