Homebuilders will get Special Audit Attention from the IRS. Revenue agents will look for inappropriate income deferrals by builders using the completed-contract method of accounting. Among the targets: Developers who sell Lots but don't report income until common improvements are done. And those who use a subsidiary to build all houses in the project so a firm can say the contract isn't complete until all homes are built. Otherwise, the home builder would owe taxes after each house is finished.
