Posted on 05/27/2010 9:44:32 AM PDT by TCH
(Initial Focus on Employment Tax Compliance)
When the Internal Revenue Service (IRS) released its five-year strategic plan last year it promised a flurry of new attacks on the public in a variety of areas. Referred to by the IRS as enforcement initiatives, these attacks constitute the key areas the agency will target for increased audit attention in the years to come. What was a mere promise last fall of more audit activity is now a reality. The IRS just recently launched the first wave of audit attacks.
In reviewing the IRSs strategic plan it came as no surprise to me that the lions share of this new audit attention would be focused on small businesses. What did surprise me is the level of aggressiveness with which the IRS intends to carry out the attack. The agency identified four specific areas that it will focus on. I reveal them here.
1. The mis-classification of workers as independent contractors (ICs)
2. Employment tax return non-filers
3. Payment of fringe benefits to employees
4. Payment of compensation to corporate officers
(Excerpt) Read more at personalliberty.com ...
Shallow grave. My tomatoe plants flourish. Mum’s the word. ;-).
Have you heard about the new 1099-K form and the proposed ATM transaction reporting?
The health care law also provides for a new 1099-K form on which all credit card transactions will be reported to the IRS. Also, the finance reform bill, will require banks to report all ATM transactions. Both of these requirements, IMO, are efforts to gather details that can be used to squeeze small businesses and contractors.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.