The IRS is speeding up its efforts to narrow the estimated $350 billion tax gap.
Case in point: Instead of waiting until next spring to launch random audits of employment tax returns, as initially planned, the IRS recently announced it would begin the first 1,500 examinations this November. The agency expects to complete a total of 4,500 such audits over a three-year period.
In particular, IRS agents are being instructed to examine worker classifications,and executive compensation. Also, agents will be wary of S corporations paying their owners little or no wages.