The IRS will be conducting National Research Program (NRP) audits of S-corporations during the fall of 2011. The NRP audits are usually a more in depth audit which looks at almost everything. Whereas a normal IRS audit usually focuses on a few selected items that are large or questionable in nature. Also, normally when a return is audited it is a return that was prepared 2 to 3 years ago. However, on the NRP audits the IRS will be auditing the most recently filed tax return. This could mean that if you filed an S-corporation for 2010 that it will be under audit this fall.
The NRP audits are usually performed so that the IRS can get a better idea of where people are making mistakes or are "cheating" on their tax returns. They use the information gathered to pick who should be audited and to "better" audit the returns. Even though the NRP audits are for research purposes, any adjustments made by the IRS would still be treated as a normal audit adjustment.
If you receive a notice or a telephone call from the IRS indicating that you are going to be audited, please let us know as soon as possible so that we can assist you.
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