Our CPA firm helps with IRS officer compensation audits (reasonable compensation). If you’re being audited you may receive:
Form 4666 – “Summary of Employment Tax Examination” and Form 4668 – “Employment Examination Changes Report”
These documents go together and are usually prepared by an IRS agent after there has been a verbal understanding of the outcome to an audit. It details the changes in payroll taxes, the forms effected and the years that the changes apply to. The agent may assess penalties and display them on this form too. Before you agree to the proposed changes, you may want to seek the advice of an expert on reasonable compensation. Our firm can help.