The IRS Audit Blog

Posts Tagged ‘payroll’

Question: Why is the IRS so stringent on the timely filing of Form 941?

Answer: Because the money that is being deposited is withheld from employees pay. It is not money that belongs to the employer any longer and the IRS does not want the business doing anything to put money at risk that is not theirs.

New hires save businesses money

Dear Tax Talk, Under the new HIRE (Hiring Incentives to Restore Employment) Act that was just passed into law, what are the benefits of adding employees?

Related Information

Late last year, the IRS sent notices to approximately 2,000 taxpayers as part of its Employment Tax National Research Project. In February 2010, the IRS will begin examining employers specifically targeting employment taxes: FICA, Social Security, Medicare, and federal income tax withholding.

Employment Tax Audit & What to do?

Question: How to file taxes if only cash was earned and employer will not provide proof of employment?

My husband worked last year for cash. We did not keep records of how much he earned, but estimate it at under
$18, 000. His employer says he has no record of him working there and will not provide anything. We are not looking for a tax refund, we just want to file to avoid an audit or any trouble with the IRS. We are not sure if we need to file, and if we need to file, how do we do it? There is no W-2 or 1099 and I know those things are needed to file.

Other things to take into consideration. We have one son (age 4). My husband also became a permanent legal resident in the United States in 2007. I have called the IRS to ask, but get different answers every time. Any clear advice/tax rules are much appreciated.

Answer: just file a 1040 with the irs…put the whole thing in as wages without a 1099-misc. (thats what it is, right?).

did you know that even if you earned it from stealing, bribes, drugs, or prostitution the irs wants it cut! Its in the books.

if you had no taxes withheld, then you will have to pay all of it now (as opposed to a little every week).

make sure you put the whole family to reduce the tax you will owe. also get the better of the standard or itemized deduction.

if you buy turbo tax it will guide you.

and yes, the irs may interview you to get info about your employer to verify where you got your money.
this is not guaranteed though.

IRS peers into executive compensation

As the Obama Administration seeks backing for a tax on banks’ lucrative pay packages, the Internal Revenue Service has been stepping up its oversight of executive pay through its auditing and other powers.

Represent Taxpeyers before the IRS

Question: What happens if my employer amended my W2, but didn’t give me the W2C form?

My employer recently told me that my income was overstated for 2006. As a result I was given a “Corrected” W2. I had a “tax professional” (friend of our accountant) ammend my 2006 taxes with the IRS and it looks like I’ll be getting a small refund. HOWEVER, I read online, and heard from a coworker, that you’re supposed to submit a W2C form to ammend returns. Any ideas what kind of consequences this could have for me and/or my employer?

Answer: It is illegal…tell them that.