In recent years, there has been an uptick in IRS audits of government entities in New York State (NYS). At The Bonadio Group, we have worked with NYS authorities, school districts/BOCES and counties to help them navigate the uncertain terrain of an IRS audit.
Our assistance in this area has focused on the following two components:
- Assisting with the audit once it has been identified; and
- Working with the client to identify and rectify possible risks in advance of an audit.
How can we help you with an IRS audit?
If you have been contacted by the IRS, you should not hesitate to reach out to us immediately – even before you engage with the IRS agent.
We have helped several of our government clients navigate this process, assisting them in reducing their initial assessment and subsequent claims, often totaling hundreds of thousands of dollars. Our experience has shown that involving experts early on reduces the exposure that our clients face.
Our IRS tax and government team members will represent you during your audit to ensure that the point person representing your government understands tax audits and the makeup of your government. These experts can assist you through the audit by understanding what your likely exposure is and whether there are any allowable compromises that may be offered.
Bottom line: you should never risk going it alone.
How can we help limit your exposure prior to audit?
The Bonadio Group has developed an IRS audit pre-review program for governments that helps identify possible tax exposures specific to the areas we often experience in our assistance with clients.
While there are many areas that may fall under an IRS audit, we have found that these audits often center around subcontractor versus employee classifications. Our pre-review program will include a deep dive on tax filing compliance, non-employee contracts and other key areas of risk to help you best prepare in advance of an audit.
Bottom line: Don’t wait until under audit to fix potential tax liabilities.
Give us a call
IRS government audits can be tricky and cumbersome, but not unexpected. It’s not a matter of if, it’s a matter of when, and it’s best to have a plan in place. Let our experts here at Bonadio help you limit exposure before an audit occurs and handle the situation when an audit arises. We welcome you to schedule a call with us directly to further discuss.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
