The IRS reportedly wants to find out how closely companies are complying with requirements for paying employment taxes by doing audits of about 6,000 companies.
A major concern will be how well companies are classifying their employees and independent contractors, according to
The IRS, in its upcoming audits, will focus not only on employee misclassifications, but also on how well companies report executive perks such as use of company cars, personal use of company-owned vacation property, and salaries at S corporations, according to Bloomberg. The new audits could be an uncomfortable experience for the accounting departments that will be facing them. Major companies like FedEx are already in hot water over their classification of home delivery truck drivers as independent contractors.
An IRS audit of the companys 2002 taxes is going to cost FedEx