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:

• 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.