Several actions can result in a compliance check from a tax authority like the IRS. Some of the most common triggers for compliance checks include the following:
Missed deadlines and payments
Inaccurate filing information
More deductions compared to other organizations in your industry
Fluctuations in earnings
Unlike an audit, the IRS conducts a compliance check to ensure organizations understand how to file various tax forms correctly, so they do not monitor books or financial records. Instead, a compliance check is conducted to ensure you understand your tax forms.