Tuesday, September 29, 2009

New IRS Payroll tax exams

Did you know that IRS announced that it is starting 2,000 intensive payroll tax exams starting 11-25-09? The IRS is employing 200-300 agents for this examination project.

The IRS will look at employee versus contract labor, taxable versus nontaxable fringe benefits, whether employee expense reimbursement plans qualify for tax free reimbursements and whether the employees submitted the proper documentation, whether highly compensated employees reported the correct amount of income and whether any employees failed to file their personal income tax returns.

When was the last time you had a good tax professional review these areas? Prov. 24:5-6 contains the best advice for churches and ministries to follow.

1 comment:

  1. Hi there! great stuff here, I'm glad that I drop by your page and found this very interesting. Thanks for posting. Hoping to read something like this in the future! Keep it up!

    Do you have problem with irs payroll tax? The IRS continues to use Enforced Collection when it comes to unpaid payroll taxes and payroll returns that haven’t been filed. Enforced Collection can include a levy on the assets of the business, including the accounts receivable, equipment, automobiles and bank accounts.

    The IRS can also close a business for non-payment of payroll taxes. If the business is closed or files for bankruptcy protection, the IRS will look to the owner of the business for collection of the penalties, interest, taxes and trust funds. In the case of a corporation or a partnership, the IRS will look to the person responsible for paying the payroll taxes to collect the trust funds. This is known as the Trust Fund Recovery Penalty.