Barter Is Not An IRS Target!
Perhaps the most entrenched myth about barter�one that many CPAs
themselves perpetuate out of lack of current information�is that it
flags a company for an IRS audit.
Source of the myth: Between 1979 and 1983, the IRS put considerable
resources into a project to examine the barter business. During that
period, all trade exchange networks were audited, along with a
sample of their clients� returns. The study disclosed that
businesses that used barter had a better than average record of tax
compliance.
Today, a company that barters has the same chance of being
audited as any other organization.