The IRS isn't just reviewing books anymore, it's running algorithms. After losing roughly 25% of its workforce, the agency is compensating with technology: AI models now cross-reference your 1099 filings, depreciation schedules, and reported revenue against industry benchmarks in milliseconds. For construction owners, GCs, and subs, fewer human reviewers means the algorithm carries more weight and algorithms don't miss things. If your books are messy or your worker classifica

As a contractor, you're accustomed to handling a large number of moving parts, labor costs, raw materials purchases, and the day-to-day responsibilities associated with running a construction business. However, one area that frequently presents issues is Cost of Goods Sold (COGS) accounting. While it may appear to be a simple element of your bookkeeping, errors in calculating cost of goods sold can raise red flags with the IRS, resulting in audits and penalties. In this post,