Disputes over employment classification frequently arise between IRS auditors and firms. Due to the possibility that their contractors can be considered workers, many employers that have their documentation in order end up receiving audit notices. Despite how frightening the IRS is, evidence and persuasive arguments can disprove them.

To successfully manage the employment audit, business owners must speak with their certified CPA in Southwest Florida. Without professional advice, doing so could incur fines and expenses. Although these audits are frightening, it is possible to meet the standards, maintain compliance, and safeguard your company.


An IRS audit might be either a compliance check or a thorough audit.

Since the compliance check is not as thorough, business owners will not have to put as much effort into it. All federal tax forms will be examined by the IRS, and you will be interviewed. After that, they will decide if you have broken any rules.

Full audits take a lot of time and are thorough. Before the IRS is pleased with what they discover, all financial documents for the relevant year will be evaluated, and it’s possible that multiple interviews may be necessary. The auditors have a good understanding that employment regulations have not been followed if a complete audit is started, either owing to real infractions or inaccurate records.

Whatever the situation, it’s critical to work with the auditors. Respond to their inquiries, deliver requested documents, and schedule meetings as needed. However, consulting with a CPA can assist you in properly resolving the concerns when dealing with a complete audit.

The best way to prevent the full employment audit in the first place

Even when you have almost ensured your records are accurate, knowing that the IRS may launch an audit at any time is frustrating. Your accountant should review all federal employee and contractor policies to ensure that yours complies. It is possible to identify, for instance, the difference between a task performed by a contractor and an employee in the same role. In some cases, reclassify.

Florida Tax Audit Notification

In Florida, a form DR-840 will always be sent in the mail as notice of a business tax audit. It is a telemarketing fraud if you get a call threatening an audit. However, one of those forms is the genuine deal, and you must treat it seriously.