IRS relaxes stance on certain employment tax collections

Article Abstract:

The rules governing the collection of withheld employment taxes that have not been given to the IRS have been eased to the extent that responsible persons do not include nonowner employees who act under the direction of others. The penalty is also waived for responsible persons who were not aware of the unpaid liability because the nonpayment was not willful. Partial payments are applied first to interest and penalties and so payments must be specifically marked for withheld taxes to reduce the tax debt. Chapter 7 bankrupt employers cannot designate payments while chapter 11 courts can.

Tax penalties, Withholding tax

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Independent contractor or employee: the continuing controversy

Article Abstract:

Aggressive investigation of worker misclassification issues by the IRS and the continuing uncertainty in the law differentiating employees and independent contractors for tax purposes suggest that employers should be prepared to address these issues. In response to taxpayer concerns, relief and safe harbors are available for some misclassification issues, and the IRS has initiated several programs designed to promote compliance and provide relief. Employers should establish policies regarding worker classification and designate someone as a classification specialist.

FICA Taxes, Tax administration and procedure, Independent contractors, Social security taxes

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IRS may collect employment taxes on aggregate amount of unreported tip income

Article Abstract:

The author discusses case law concerning the issue of IRS tax collection of employment taxes on tip income under IRC section 3121(q) from employers.

United States, Tax Administration, Tipping

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