Company Audit

[neednow]

The company I work for is being audited by the IRS. According to our company accountant, the IRS is requiring all executive's personal tax return for the year 2008. I am a Senior VP at the company and am concerned as to why the IRS wants my return when any salary/bonus is reflected on my W2 for 2008.

Is this a normal and a legal request of the IRS to make?

Thanks

Neednow

 

[BaBaBooey]

Don't panic.

This is normal.
They are looking to verify that all records match and they have the right to do it.
They are looking to see if there is a simply an accounting problem or a systemic attempt at tax evasion.
Either way, you can be assured that they will find something to assess a penalty for.

 

[FlaRiptide]

I would not give your company's accountant a copy of your personal tax return.

Apparently the IRS is simply trying to verify that the W-2s provided to the IRS by your company match the W-2s given to the employees. This can be done without divulging your entire 1040 to your employer.

Being that the IRS already has your W-2 (when you personally filed), and they already have the employer copy of the W-2 information when your company filed their 941 and the W-3, thus I do not comprehend why they need any more info from you. The IRS can do their comparison with what they already have.

Unless the IRS makes a direct request of you, you are under no obligation to comply. Though, this technically could upset your company's accountant. :>)

 

[BaBaBooey]

I would not give your company's accountant a copy of your personal tax return.

Apparently the IRS is simply trying to verify that the W-2s provided to the IRS by your company match the W-2s given to the employees. This can be done without divulging your entire 1040 to your employer.

Being that the IRS already has your W-2 (when you personally filed), and they already have the employer copy of the W-2 information when your company filed their 941 and the W-3, thus I do not comprehend why they need any more info from you. The IRS can do their comparison with what they already have.

Unless the IRS makes a direct request of you, you are under no obligation to comply. Though, this technically could upset your company's accountant. :>)

I think it's obvious that they suspect some financial shenanigans from high up on the food chain.

While you are technically correct, failure to "cooperate" with an IRS request absolutely WILL generate even greater scrutiny across the board and will probably include personal audits of all executive management.
Doesn't make it right, it's just the real world.

Unless the gentleman has something to worry about, he should comply.
It is the lesser of the evils.

When dealing with the IRS, one should NEVER be willing to fall on a sword for someone else.

 

[FlaRiptide]

According to our company accountant,

As neednow has stated, it was "according" to the company accountant that the info was being requested. No direct request to the employee was made by the IRS.

If and ONLY if the accountant can show that the IRS did indeed request this info should neednow comply. Then he should ONLY provide this info directly to the IRS and NOT to the company accountant. The company does NOT need to know neednow's financial situation which is private info to be known only by the employee and the IRS.