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Tax Blog/Blawg

Tax Talk Blog for Tax Pros

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Welcome to TaxBlawg, a blog resource from Chamberlain Hrdlicka for news and analysis of current legal issues facing tax practitioners. Although blawg.com identifies nearly 1,400 active “blawgs,” including 20+ blawgs related to taxation and estate planning, the needs of tax professionals have received surprisingly little attention.

Tax practitioners have previously lacked a dedicated resource to call their own. For those intrepid souls, we offer TaxBlawg, a forum of tax talk for tax pros.

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Posts tagged Employment Tax Audits.

When battling the IRS, knowledge is power.  Nowhere is this more true than in worker-classification cases, where the IRS often seems hell-bent on treating all workers as employees, regardless of the facts.  One bright spot for taxpayers under IRS scrutiny is an obscure provision, commonly known as Section 530, that grants taxpayers a brand of “civil immunity” if they meet three criteria.  One requirement is that taxpayers file Forms 1099 (Miscellaneous Income) for all workers considered to be independent contractors.

For over three decades, the IRS has taken the position that ...

The IRS allows employers that determine that they are not in compliance with various employment and income tax laws to step forward and be accountable by entering into an agreement with  the IRS.  Generally, the agreements are structured so that the taxpayer is better off than if the IRS had identified the issue on exam.   While this assists the IRS in improving compliance without using scarce resources to uncover noncompliance, a recent  report by the Treasury Inspector General for Tax Administration ( TIGTA  ) found that the program lacked controls resulting in ...
Categories: Employment Tax

The IRS National Employment Tax Research Project has started.  On November 9, 2009 the IRS announced its first employment tax research project in 25 years.  Under the program, which will last from 2010 through 2012, the IRS will audit 6,000 employers randomly selected from all employment tax filers.  It is our understanding that the initial letters for the first 2000 employees selected to be part of the study have gone out and the audits will commence in May, 2010.  The IRS will focus on historic areas of non-compliance including (i) the misclassification of employees as independent ...