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

November 14, 2012

 

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.

For the full article, 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.

Featured Attorneys

send article

TESTIMONIALS

  • “Ed is excellent. He is very responsive and provides us with direct and concise legal opinions. His business understanding combined with his legal skills are invaluable to us. He runs a very professional practice. His personal touch is complimented by his very able legal assistant Denease Mallett. The firm is well respected.”

    -Chambers 2012

  • "I have worked most closely with Greg Harley and Read Morton. They are very thorough and very knowledgeable about our business. They inspire confidence: you just know you are in good hands when you work with them."

    -Telecommunications client

  • “Keith and I worked together on several very complex loan workouts. His knowledge and advice was invaluable to finally resolving all issues. Keith is very personable and works well with opposing counsel, even when they are being difficult.”

    -Elaine Devlin, RBC Bank

  • “A very good lawyer.”

    -Chambers 2012

  • “This firm is one, if not the top firm in the Southeast. I steer all my work to Burr & Forman exclusively. I have used other attorneys on deals where conflicts may arise and those are good firms, but I still go back to Burr time and again.”

    - Chambers 2012