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