The Internal Revenue Service (IRS) has created a “Compliance Verification Checklist for State and Local Governmental Employees.” The checklist has been issued as an exposure draft soliciting comments from employers and a final version is expected to be published in June 2010. Click here to view the form and background information.

The checklist includes common errors found by the IRS during their audit process. Please note, the list and the checklist are not all inclusive of compliance issues. Rather, the intent of the form is to assist governmental entities in identifying and correcting errors before they are raised by the IRS. Self-correction of compliance issues is generally less expensive than correction during an IRS audit when additional penalties and interest may be assessed.