IRS Announces New Payroll Tax Compliance Initiative
In an effort to combat delinquent payroll tax deposits, the IRS is launching an Early Interaction Initiative. This Initiative will alert the IRS if an employer’s payroll tax deposits have declined. When they do, the employer will receive a letter from the IRS requiring the employer to contact them to help them understand why the deposits have decreased. This could be a hassle for employers that simply decrease staffing, but in the alternative it could alert an employer that there are tax payment issues they may not be aware of.
If an employer has a history of delinquent payroll tax deposits, these alerts will be routed to Field Collections for more direct attention.
More can be read here.
