Internal Revenue Service

Construction Industry: IRS Audit Techniques Guide Internal Revenue Service

This Industry Guide is intended to be used by examiners conducting audits in the construction industry and as information for taxpayers and practitioners associated with the construction industry. Review of this guide is recommended prior to initiating an audit. Users of this guide may need to augment these guidelines by researching specific tax issues and new tax law. The construction industry represents a large segment of the total economy. Over 2.5 million companies ranging in size and specialty make the construction industry one of the largest of all industries. Businesses in the construction industry interact with businesses in related industries that supply materials, equipment, financing, and bonding to the construction contractor. Each business is dependent on one another for their survival.