Your Money : SPOTLIGHT ON TAXES : Which Industry Groups Are Being Targeted
The IRS is targeting 66 industry groups for its most feared audit program, the so-called Market Segment Specialization Program, which has specially trained IRS agents scrutinize returns of companies and individuals working in specific industries.
These exhaustive and detailed audits are aimed at getting the government “more bang for its auditing buck.” Translation: If you’re singled out in a MSSP audit, there’s a better-than-average chance that you’ll face a bill for back taxes and penalties when it’s done.
What is targeted? The IRS list follows. The agency has audit technique guides available on about half of these targeted groups and the rest will follow. Audit teams don’t generally go into full swing until the audit technique guidelines are published.
Agricultural services:
Landscaping
Lawn care
Building/Construction:
Construction*
Construction industry
Entertainment industry:
Contracts- audit applications
Entertainers (individual)*
Foreign athletes & entertainers*
Motion pictures/television
Music*
Theater-live performances
Farm:
Citrus
Grain and Milo
Tobacco
Finance/Insurance:
Bail bonds
Check cashing*
Commercial banking*
Financial institutions
Insurance Agencies
Life Insurance
Offshore casualty reinsurance companies
RTC project (forgiveness of debt)*
Foreign Controlled Corporations:
Form 10425 Withholding agents*
Passive activity losses*
Sect. 936 Corporations
Fishing
Alaska Commercial Fishing*
Forestry:
Reforestation*
Timber sales
Individual issues:
Bankruptcy
Manufacturing:
Computer/electronic components
Furniture
Garment manufacturing*
Garment contracting*
Garment industry
Wine*
Mining and minerals:
Alaska Placer gold mining
Federal excise tax, coal mining
Oil and gas operators
Real Estate:
Cooperative Housing Corp.
Low income housing credits
Agents/brokers
Developers
Real estate*
Rehabilitation Tax Credit*
Time-share & homeowner’s associations
Retail:
Auto dealers*
Door-to-door sales*
Gas Stations*
Grocery stores*
Liquor stores
Mobile unit caterers*
Pawn Shops
Rent-to-own*
Restaurants/bars/eating places*
Tobacco
Used auto dealers
Services:
Architects*
Art dealers
Attorneys*
Auto body shops
Auto repair shops
Beauty shops/Barber shops*
Bed and breakfasts
Building maintenance
Car washing and detailing
Casino gaming
Child care
Emergency care clinics
Escorts
Golf courses
Health care*
Laundromats*
Ministers
Mortuaries*
Nursing/rest homes
Parking lots
Petroleum contamination clean up
Plastic surgeons
Printing
Travel/Transportation/Utilities
Air charter*
Cable TV
Foreign airlines
Foreign tourism
Port of Houston*
Taxi cabs*
Tour Bus industry*
Travel agencies*
Trucking*
Wholesale trade:
Gasoline distributors
Jewelry dealers
Motor fuel tax
Recycling
Seafood purchases
Scrap metal
* Targeted groups for which the FBI has already issued manuals
