IRS Audits of City Payroll

Informational Memo

Published: August 4, 2020

IRS Audits of City Payroll
(pdf, 403.5KB )
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This material contains general information; it should not be used as a substitute for legal advice. Any attorney general opinions cited in this material are available on request from the League’s Research and Information Service staff.

Prepare for a potential IRS audit or compliance check by learning about common problematic issues for cities such as expense reimbursements, fringe benefits and payroll issues like social security and Medicare wages for police and fire employees, social security for elected officials and tax treatment for common health insurance issues.