The IRS has recently completed a research program comprising detailed audits of 6,000 employers. After the results have been finalized, the IRS will use this information to decide what areas to focus on in the future. The main areas the IRS found issues:
· Failure to file 1099s or withhold backup withholding on Independent Contractors
· Incorrect tip reporting
· Reporting employees as Independent Contractors
· Not reporting fringe benefits
Tax laws are constantly changing and can be confusing, contact your WOB Advisor to see if your current system is in compliance with IRS regulations.
