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

  • “It is my pleasure to recommend Howard and the healthcare team at Burr & Forman.  From issues related to medical staff bylaws, through numerous regulatory compliance and certificate-of-need applications, to the successful resolution of the largest Medicare recoupment effort against a private medical practice; Howard has always been a knowledgeable counselor, keen advisor and staunch advocate for the hospitals and medical practices I have managed. 

    Howard’s record of accomplishment is broad and impressive.  He is quick to respond when called.  His advocacy style is reassuring as he blends superior organizational skills, subject matter expertise and a willingness to listen and grasp the full understanding of his client’s needs and objectives.  

    This recommendation is made without reservation because for nineteen years, when my own reputation was at stake, I have introduced Howard to the organizations I manage.  In every case, the organization has benefitted greatly as he has managed to achieve the best outcomes possible.”

    -G. Thomas Brown, CEO, Eye Specialty Group and Ridge Lake Ambulatory Surgery Center

  • "I've been very much impressed by Greg. He's very responsive and he has demonstrated a thorough understanding of the facts amidst some complicated legal issues. There's also been a fair amount of maneuvering and strategy that he's been very good at handling."

    -Chambers 2013

  • Owner/President told Ed, "I want to retain you in this case because you are a finisher."

    -Hosea O. Weaver & Sons, Inc.

  • "Burr & Forman provides outstanding representation in all areas."

    -Best Lawyers 2012

  • “He is very known from a corporate tax standpoint and SEC issues. He has street smarts – he’s good at helping you get things done in the correct way and advising you on which paths to go down. He answers your questions and addresses your concerns. You go to the people that you trust and have confidence in, and for me that’s Ed.”

    -Chambers 2012