The two thousand plus page Health Care and Reconciliation Bills are complex and rich with provisions that will take time to be fully discovered. In this article I’ll explore some of the new taxes, fines and penalty provisions that affect employers and their workers. Many of the provisions do not take effect immediately, but are […]
WASHINGTON DC-The IRS announced two new tax benefits available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act enacted into law last week.
The first tax credit
Employers who hire unemployed workers this year (after Feb. 3, 2010 and before […]
Washington DC-As part of a coordinated effort to crack down on worker misclassification, the Obama administration recently announced that it has directed both the Treasury Department (IRS) and the Department of Labor to increase enforcement on companies that treat workers as independent contractors when their job duties are actually those of an employee.
Federal budget is […]
Typically, when the economy struggles businesses try to cut costs. One common method is by employing workers as independent contractors to avoid the costs associated with employees. This tactic will save money only if it’s done correctly. This is not a good time to do it wrong, because both federal and state governments are gearing […]
WASHINGTON - The Internal Revenue Service announced this week that interest rates for the calendar quarter beginning April 1, 2010 are:
four (4) percent for overpayments for non corporations
three (3) percent for overpayments in the case of a corporation;
four (4) percent for underpayments for all;
six (6) percent for large corporate underpayments;
one and one-half (1.5) percent for […]
WASHINGTON DC- As I shared earlier this week, the IRS’ National Taxpayer Advocate, Nina E. Olson, released her annual report to Congress, (required by federal statute) dated December 31, 2009, warning that (the IRS struggling because) it “is subject to three diverging forces…”
Increased responsibility for non-core tax administration duties,
Increasing demand for taxpayer service,
Declining resources to […]
In my seminars I tell participants that, “Over 70% of all employment tax audits find misclassified workers, resulting in a tax assessment.”
The reason the number is so high is because tax agencies rarely select a company for an employment tax audit unless they suspect there are misclassification errors. This means the auditor shows up the […]
WASHINGTON DC-The IRS’ National Taxpayer Advocate, Nina E. Olson, wants to improve “state information sharing tracking metrics” on misclassified workers.
The Taxpayer Advocate’s report released to Congress, dated December 31, 2009, lists the type of information that is shared between the IRS and local state enforcement agencies.
The IRS receives:
The state income information
Sales information (e.g., from local […]
The New York Times is now reporting about the government crack down on misclassified workers.
I’ve been reporting for the past couple years that the federal government, and most states, are cracking down harder on worker misclassifications. I’ve told you it is a politically correct way to increase revenue for any government agency that needs money […]
Just when you think you’ve heard it all-the IRS recently issued a public notice that using FORM 1099-OID can constitute a “Frivolous Tax Argument” punishable by jail time and big fines.
Washington DC-The IRS recently issued its 2010 list of “Frivolous Tax Arguments” that it doesn’t want to hear from any of us. One of the […]
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