IRS Audit Technique Guide - Exploring the Construction Industry (Completed)

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The construction industry presents unique tax, accounting, and compliance challenges, making it a frequent focus of IRS examinations. Understanding how the IRS approaches construction audits—and the specific issues examiners are trained to identify—is essential for tax professionals advising contractors, developers, and related businesses. This course provides a practical, behind-the-scenes look at the IRS Audit Technique Guide (ATG) for the construction industry and how it is used during examinations.

Led by Susan Harper, Certified Fraud Examiner and retired IRS Internal Revenue Agent, this course walks participants through common construction industry business practices, accounting methods, and audit risk areas. Attendees will explore how the IRS examines income, expenses, contract types, and indirect methods, as well as the interview techniques examiners often employ. Real-world case studies and audit examples are used throughout to help professionals better prepare clients, reduce audit exposure, and respond confidently when an examination arises.

Who Should Attend
This course is designed for professionals who prepare, review, or advise on tax returns for construction-related businesses and want a deeper understanding of how the IRS conducts construction industry audits.

Topics Covered

• Overview of the IRS Construction Industry Audit Technique Guide
• Participants and roles within the construction industry
• Contracting processes and types of construction contracts
• Homebuilders and land developers
• Income recognition, expense issues, and other tax considerations
• Indirect methods of income reconstruction
• IRS interview techniques and examination procedures
• Construction industry audit case studies

Learning Objectives

• Identify accounting methods, tax issues, and business practices unique to the construction industry
• Explain how the IRS uses the Construction Industry Audit Technique Guide during examinations
• Evaluate income, expense, and other tax issues commonly reviewed in construction audits
• Recognize examiner interview techniques and information-gathering strategies used during audits
• Apply guidance from construction-related case studies to better prepare clients for IRS examinations

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None