Thursday, April 12, 2007
IRS Enforcement Initiative - Employment Tax Non-Compliance
Employment tax non-compliance issues and enforcement are part of an IRS agency-wide strategy to reduce the "tax gap", according to John Tuzynski, IRS Chief of Employment Tax Operations. Mr. Tuzynski made his remarks at the American Payroll Association's conference March 23.
Among several identified non-compliance issues identified, two are often associated with household employment. They are:
Mr. Tuzynski also discussed IRS efforts to implement and expand information sharing arrangements with state workforce offices. These offices are responsible for the management of unemployment insurance programs.
Among several identified non-compliance issues identified, two are often associated with household employment. They are:
- Non-payment of employment taxes following cash payments to employees
- abuses in worker classification, especially treating employees as independent contractors, consequently failing to withhold and remit employment taxes
Mr. Tuzynski also discussed IRS efforts to implement and expand information sharing arrangements with state workforce offices. These offices are responsible for the management of unemployment insurance programs.
Labels: nanny tax enforcement, nanny tax evasion
