• IRS to Launch Sweep of Employers' Payroll Tax Practices
  • December 16, 2009
  • Law Firm: Thompson & Knight LLP - Dallas Office
  • The IRS recently announced that it will launch a major audit initiative targeting underpayment of employment taxes by U.S. companies. The project is scheduled to begin in February 2010 and is the agency’s first comprehensive review of employers’ payroll tax obligations in 25 years. As part of the Employment Tax National Research Project (NRP), the agency will randomly select 2,000 taxpayers each year for the next three years. Those employers will be subjected to comprehensive audits of their payroll tax practices. Then, the agency will use the information it obtained from those 6,000 audits to design a ramped-up enforcement strategy -- a strategy that will enable it to identify and audit future employment tax returns deemed to have the greatest compliance risk.