Experienced Tax Attorneys

Call Us Confidentially Now: 202-349-4033

Call us confidentially now:

Confidential & Experienced Tax Lawyers

Get Help Now: 202-349-4033

News & Events

IRS Launches Employment Tax Audits!

Posted in Asset Forfeitures / IRS Audits on January 14, 2010 | Share

In November 2009, the IRS kicked off a new National Research Program Initiative, known simply as “the Initiative”.  It involves the detailed "audit of employment taxes" for 6,000 randomly selected businesses over the next three years.  The intent of the Initiative is two-fold:

The IRS has identified specific areas to focus their auditing efforts under the Initiative, including:

    • Worker Classification:  This involves an examination to determine whether a worker is properly classified as an employee or independent contractor for tax purposes. The         determination is based several aspects of the relationship between the employer and  the  person performing the work.
    • Employee Fringe Benefits:  A fringe benefit is a form of payment for the performance of services.  Fringe benefits include such items as insurance coverage, use of a company car, free meals or child care.  They are provided by employers tax-free to employees but not to independent contractors.
    • Reimbursed Business Expenses:  These are an employee’s out-of-pocket expenses that are reimbursed to him by the employer. Typical reimbursed business expenses include taking a client to lunch or purchasing office supplies. To qualify, a worker must have paid or incurred the expenses while performing services as an employee.

Make sure your company is in compliance!  If not, speak with an experienced Tax Attorney that can help you get into compliance or if the IRS has already contacted you, hire an attorney today to help you through the process!

Thorn Law Group

Get Trusted Help Now

Over 80 years of expertise for your complicated tax law issues.

Back to the Top

Hear What Our Clients Have To Say

"Kevin E. Thorn and the tax attorneys at Thorn Law Group are exceptional. When I came to them, I had just received a letter from the Department of Justice concerning an undisclosed bank account at a Swiss bank. I thought I was going to go to jail and lose everything I had worked for just because my family and my business are international. Mr. Thorn's knowledge of the tax laws and his skills in presenting my situation to the IRS and Department of Justice proved superior!"
Emma Zdon