Here is another headache for us CPA’s
We need to be more alert as to how our clients w-9s are being filled out.
this is particularly true for medical and financial professionals dealing with a multitude of insurance companies
We recently met with an its auditor regarding a IRS tax audit of one of our dental clients, during our discussion with this auditor he indicated that the probable cause for the audit was the numerous 1099 forms that were issued under the dentists Social Social Number in leu of the business employer identification number.
over the last few years the IRS compute programs have become more sophisticated and will pick out tax payers for audits based on certain metrics.by having the 1099 issued under the taxpayers SSN there program was led to believe that his income was understated
even though the auditor realized that 1099s were not issued correctly, he is still required to complete his audit.
again be careful filling out those w-9 forms
we advise you to review the prior years 1099s and contact any company that issued them under your SSN
this underscores the fact that the IRS with the help of sophisticated matching programs is looking at all returns.
As always feel free to call with any questions you may have