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Efforts to Address the Compliance Risk of Underreporting of S Corporation Officers’ Compensation Are Increasing, but More Action Can Be Taken

Report Information

Date Issued
Report Number
2021-30-042
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

The Deputy Commissioner for Services and Enforcement should evaluate the 151 S corporations with nonresident alien shareholders to ensure that they meet the filing requirements for S Corporations.

The Deputy Commissioner for Services and Enforcement should evaluate the benefits of creating controls to identify invalid S corporations and mitigate the risk of noncompliance when shareholders are found to be nonresident aliens.