• videocam Live Webinar with Live Q&A
  • calendar_month May 29, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

IRS Audit Triggers for Business Returns: IRS Selection Process, Preparing for an IRS Examination

R&D Credits, Worker Misclassification, Large Cash Transactions

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About the Course

Introduction

This webinar will divulge key areas of IRS scrutiny for income, deductions, and credits often claimed on business returns. Our panel of veteran tax attorneys will highlight tax items most likely to trigger IRS examinations and explain how companies should prepare to substantiate the amounts claimed.

Description

Although the IRS does not disclose its processes for selecting business returns for audit, specific items are clearly focal points for these examinations. For example, audits of returns claiming the R&D credit have increased, perhaps because this credit provides significant tax relief for businesses. As with all audits, proper documentation and preparation are key to surviving a business audit.

Misclassifying employees as independent contractors continues to be a substantial risk. Failure to pay payroll taxes and provide employee benefits can create risks besides income tax liability, including fines, penalties for failure to provide W-2s, payment of both the employees' and employers' FICA taxes, and a 20% penalty if the IRS believes the intent was fraudulent. Tax practitioners advising businesses need to understand the primary reporting items that the IRS is targeting for audits.

Listen as our panel of business tax attorneys discusses the primary income, deductions, and credits that trigger IRS examinations, as well as steps companies can take to prepare for these audits. 

Presented By

Jennifer Keegan
Senior Manager
Plante Moran

Ms. Keegan specializes in tax controversy matters with a focus on helping clients navigate complicated IRS exam and appeals processes. Additionally, she advises clients on collections matters, other federal tax enforcement actions, filing private letter ruling requests, and many other tax controversy matters. In addition to tax controversy matters, Ms. Keegan also provides guidance on emerging tax issues, including new tax legislation and developments in tax guidance.

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Scott K. Tippett
Principal
Offit Kurman

Mr. Tippett focuses his practice on corporate, business, intellectual property, and tax issues for individuals, families, and small to mid-sized closely held companies.

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Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Date + Time

  • event

    Friday, May 29, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. IRS audit red flags for business returns: introduction

II. The IRS selection process

III. Round numbers

IV. Claiming excessive expenses

V. Claiming the R&D credit

VI. Misreporting income

VII. Large cash or large numbers of cash transactions

VIII. Real estate rental losses

IX. Deducting hobby losses

X. Misclassification of employees

XI. Growing and selling cannabis

XII. Home office deductions

XIII. Other audit triggers

XIV. Preparing for potential IRS examinations

XV. Imposition of penalties

XVI. Best practices

The panel will cover these and other critical issues:

  • Preparing for an audit of an R&D credit
  • How having large cash transactions could trigger an IRS examination
  • Penalties and fines that could be imposed as a result of an IRS audit
  • Determining employee vs. independent contractor status of workers

Learning Objectives

After completing this course, you will be able to:

  • Identify common targets of IRS business audits
  • Determine steps a business can take to prepare for an IRS examination
  • Decide how round numbers on business returns can impact the IRS audit selection process
  • Ascertain the importance of documentation when claiming certain deductions and credits
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.


BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .