Wednesday, June 29, 2016

IRS on the Warpath for Independent Contractors

IRS has been on to the game employers play by misclassifying workers as independent contractors as well as not paying over withholding taxes from the employees they do admit they have. Being shorthanded has not helped IRS in this area. But the Service says this is going to change as it works with the Department of Justice to seek out payroll tax fraud. This will include misclassifying workers as well as businesses paying their employees in cash and the attendant false tax filings. Criminal prosecution may result. IRS has been working since 2010 on an employment tax audit study in the hope that its analysis will allow it to audit employers more effectively even with fewer agents on board.

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