Dixie Contractor 6,000 Audits and More: IRS and State Enforcement Efforts in Employment Tax Compliance August 10, 2012

August 10, 2012

An Introduction to the IRS’s Employment Tax National Research Project

In a 2009 report, the Government Accountability Office (the “GAO”) took the IRS to task regarding its supposed lackluster enforcement efforts in employment tax compliance. The so-called “tax gap” – the gap between taxes owed and those actually paid – was widening at this time, and employment tax issues, such as the misclassification of workers as independent contractors, were believed to play a significant part. Soon after the GAO report’s release, the IRS responded by announcing a “National Research Project” (“NRP”) – the first of its type since 1984 – to address many of the issues outlined in the report.

Referring to the NRP as a “research project” is somewhat disingenuous, however, because in reality it is more like a massive audit initiative. In the NRP, the IRS pledged to audit 6,000 U.S. companies. NRP audits have targeted, and continue to target, a broad cross-section of employers nationwide including corporations and pass-through entities, profitable entities and those in-the-red, and large and small operations. The more important issues included in NRP audits are worker classification, expense reimbursements, executive compensation (Section 409A) compliance, and fringe benefits such as company automobile usage. A sampling of these issues is addressed in this article.

To read the full article from Dixie, please click here.



Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.
send article

TESTIMONIALS

  • “I have worked with Lauren for quite a while and have found her to be very responsive and knowledgeable.  She has made every effort to assist me and my company in the most professional manner.  She has given me sound and solid guidance on some very difficult and sensitive issues that has proved to be in my company's best interest.  It has always been a pleasure to work with Lauren.”

    -Jillian M Siress, Vice-President, Reliance Trust Company

  • “I work specifically with Dwight Mixson and his practical and fair approach was especially showcased in this transaction. He was proactive.

    -Chambers 2012

  • “Keith has provided excellent real estate legal support for myself and my colleagues in good times and bad. I have always found Keith's work timely and reasonably priced and would recommend him without a second thought.”

    -Michael Green, CNL Bank

  • “Lauren is smart, professional in word and manner, and quite intuitive in analyzing situations. She thinks through and researches issues before proposing solutions. One of her best qualities is that of keeping her client(s) focused on the defined goals for settling the problems at hand using her cheerful personality.  It is indeed a pleasure working with Lauren."

    -Claire Johnson

  • “I have always been impressed by Jack. He has a quality that many lawyers that I have worked with in the past do not possess. He sees the matters from a business perspective while incorporating his legal skills in the matter. Additionally, he is always very responsive to any question or problem we have, and I believe that he truly cares about our firm’s success.”

    -Chambers 2012