The agency plans to look through the books of 6,000 companies over 3 years.
The Internal Revenue Service, trying to recoup some of the estimated $14 billion that companies underpay in employer taxes each year, plans to wage a three-year campaign to audit 6,000 businesses.
The cash-strapped government, which separately said it wants to put a levy on large financial companies that received bailouts, will zero in on worker classification, fringe benefits, reimbursed expenses and executive compensation. The selection of the audited companies will be random, and both big and small businesses will be scrutinized.
Defining who is, or isn't, an employee might be the biggest challenge for the IRS and the companies it audits. While some businesses might be confused about how to classify workers, others might misclassify employees to bypass protections, such as minimum-wage laws, child-labor standards and overtime requirements, and avoid having to offer health and pension plans.
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