IRS Performs ‘Routine’ Audit On Philadelphia School District

PHILADELPHIA (CBS) – The Internal Revenue Service is auditing the Philadelphia School District but school officials say it’s just routine.

The district’s chief finance officer, Michael Masch (pictured), says the IRS has asked for 28 points of information but he says that’s nothing out of the ordinary, “The purpose is to determine whether the school district and its employees are in compliance with federal tax laws. I mean, this is pretty routine stuff. We get audited on lots of things.”

Masch does say this is the first time anyone in the district can remember the IRS auditing the district. He also admits the district was not prepared when auditors showed up at the district Tuesday, but he says the auditors were understanding.

“We apologized and explained to them that we have the little matter of a budget crisis which they were not too aware of,” Masch says.

Reported by Pat Loeb, KYW Newsradio 1060

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  • B

    “only about 2% of audits are considered chance or random; in most cases, the IRS is engaging in targeted enforcement, meaning that something about your tax return or business activity has triggered interest, usually from a list of hot topics.” It’s been alleged that the district issued forms W-2 and 1099 for the same taxpayer. This definitely raises eyebrows at the IRS because it’s not common to issue both for the same taxpayer – but it’s also not necessarily improper, depending on the scope and types of work being performed ” forbes blog

  • grumpy

    Let’s hope that they follow this up with an audit of City Council!

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