Resource Library

Free Online Legal Resources

I Received A Notice That I Am Being Audited By Does Tax. Why Am I Being Audited?

Section 46­118 of the District of Columbia Unemployment Compensation Law authorizes DOES to audit the records of DC employers. Each year DOES tries to audit a random sample of up to 2 percent of our contributory employers as recommended by the US Department of Labor. The primary objectives of the tax audit program are to:
  • Insure compliance with the taxing provisions of the District of Columbia Unemployment Compensation Law;
  • Foster understanding by employers of the unemployment compensation law;
  • Maintain good agency­employer relationships through dissemination of information pertaining to the overall employment security program.
A field auditor reviews an employer's acknowledged payroll and searches records for misclassified wages. The records reviewed and searched may include:
  • All cancelled checks
  • Time cards
  • Cash vouchers
  • Cash disbursement journal
  • General ledgers
  • Individual earnings records
  • Check register
  • Payroll journal
  • DOES tax reports
  • IRS Form 940
  • W­3 and W2s
  • IRS Forms 1099, 1096 and master vendor files
  • Petty cash
  • Chart of accounts
  • Profit and loss statement
  • Corporate minutes
  • Federal tax returns (1040, 1120, 1120S, etc.)
  • Any other records which may reflect services

Get Help from an Experienced Employment Law Attorney

Have you been discriminated against by a potential or current employer -- as a job applicant or current employee? To best protect your legal rights you should discuss your situation with an employment lawyer. Meet with a local employment attorney sooner rather than later to protect your rights.

Additional Employment Law Articles

Search LawInfo's Employment Law Resources

Find an Attorney in Your Area

Employment Law Lawyers

Related Employment Issues