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

  • “Their knowledge of the industry and ability to work with borrower's counsel in a number of difficult situations has been invaluable. The firm is very knowledgeable and brings a wealth of experience across multiple practices and disciplines. This provides a strong one-stop shopping experience when working with the firm.”

    -Chambers 2012

  • “He is an excellent attorney, a very good litigator. He has a very good and calm demeanor and doesn’t get wild. He keeps his cool and continues to pile on. He is a good planner in terms of strategy."

    -Chambers 2012

  • “I think a lot of him. He is reasonable and logical. He is very good at getting the deal done and doing so in a collaborative way as opposed to adversarial. I always refer to him and believe he will take care of the client.”

    -Chambers 2012

  • "The Burr & Forman Creditor's Rights group is top notch and definitely should be ranked with the nation's best lawyers. They are responsive, timely, very knowledgeable, resourceful, and helpful. They fight for their clients while offering alternative strategies that may be less expensive. That being said, they will "go to the mat" if necessary and do so in a prudent well prepared manner."

    -Best Lawyers 2012

  • “She’s doing some good things over there.”

    -Chambers 2012