New IRS Audit Likely to Snare Some Contractors

One of many lessons learned by governments the past three years is that unpaid taxes make economic downturns considerably worse. With that lesson fresh in mind, the IRS earlier this year launched a major audit initiative intended to capture delinquent taxes.The audit, called the National Research Project (NRP), is particularly significant for contractors because it closely examines worker classification. Because practically all construction companies employ a combination of full-time workers and independent contractors, the audit may strike close to home to some in the construction trades.

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