For most businesses, about 22% of personal service companies, consulting companies, attorneys, accountants, professional service providers are subjects of audit which I found really interesting. It just proves that the IRS tends to focus on categories that they find the highest propensity of errors. If you actually go to the IRS website, there’s a series of audit technique acts. The IRS will publish the techniques that they use to audit certain types of individuals. They’ve got one for cash businesses. They’ve got one for construction. They’ve got one for partnerships. One of the really interesting ones is they’ve got one for attorneys. In my PowerPoint slide, I have included the link for the IRS audit technique guide for attorneys. So you can go on and see what the highest used categories are for attorneys and how attorneys get audited, which happens quite frequently. I have several attorney clients. Attorneys by the way make the worst clients.
Key Takeaways
- For most businesses, about 22% of personal service companies, consulting companies, attorneys, accountants, professional service providers are subjects of audit which I found really interesting.
- It just proves that the IRS tends to focus on categories that they find the highest propensity of errors.
- If you actually go to the IRS website, there’s a series of audit technique acts.
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