Boulder, CO asked in Tax Law for Colorado

Q: I did payroll for an company that is now being audited, is the IRS going to contact me?

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1 Lawyer Answer

A: It is possible, but this mostly depends on the nature of the audit. If the audit relates to material that you handled it is likely that either (or both) the IRS and the company will contact you (esp. if there are any unexplained items or discrepancies). Unless you willfully did something wrong, the contacting with likely be for informational purposes only.

Also be aware that the company may try to classify you as an employee (or something like that) and offer "free" legal representation. If the company does make this offer, it is to protect themselves and potentially prevent you from giving the IRS too much information. This is not an inherently bad practice, but be aware that the company's interests may not be the same as your interests...

Unless you knowingly did something wrong, you probably have nothing to worry about. I would be very surprised if you need to contact/hire a lawyer. Mostly, the best advice is to be as truthful and accurate as possible.

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