IRS Audits of City Payroll

Information Memo

Published: August 4, 2020

IRS Audits of City Payroll
(pdf, 403.5KB )
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This content conveys general information. Do not use it as a substitute for legal advice. Any attorney general opinions cited are available from the League’s Research 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.