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IRS Employment Tax Audits: What Employers Need To Know


Over the past few years, the IRS has been sending a loud and clear message that employment tax compliance is at the center of their attention. Based on recent activity, it is evident that the IRS is strongly committed to reducing the tax gap, which is the amount of tax liability thought to be owed by taxpayers not paid on time. Payroll taxes account for about 70% of total federal tax revenues and the IRS feels that a large number of companies are not in compliance.