The IRS says it will focus on these eight areas in small business audits in 2013:
- : Recent data show employers aren’t reporting personal use of company vehicles by employees.
- High-income taxpayers: The IRS will concentrate on taxpayers with a total positive income above $1 million filing Schedule C.
- 1099-K matching: The IRS plans to begin Form 1099-K matching under a new pilot program.
- Health insurance credit: This credit, which became available in 2010, will face IRS scrutiny.
- Foreign transactions: The IRS will vigorously pursue taxpayers who try to hide income and assets overseas.
- Partnerships: Examinations will cover large loss partnerships and other abuses.
- S corporations: Emphasis will be on exposing losses in excess of basis on shareholder returns.
- Worker classification: Numerous employees are being misclassified as independent contractors.