An IRS official says about 2,500 small corporations (those with assets of less than $250,000) will be audited as part of the IRS national research program. Starting in April, tax returns from 2010 will be reviewed. The IRS will use the results of these exams to update its return audit selection formulas.
Adding these random audits to the increase in audits due to the massive increase in the number of IRS auditors since 2007 greatly increases the odds that your small corporation may be audited.
This may be a good time for you to meet with your tax preparer and discuss any potential exposure you may have.
Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.