IRS Tax Relief Is Vital for Businesses Audited for Worker Misclassification

As the IRS expands audits to 6,000 companies, our tax resolution firm provides expert audit representation while helping businesses resolve potentially detrimental problems that arise from delinquent employment and payroll taxes.

The IRS is stepping up efforts to capture lost tax revenue, recently announcing it would embark on a three-year campaign to audit 6,000 businesses.

Of most concern is any business with unpaid payroll taxes and delinquent employment taxes. Failure to pay these taxes can be detrimental to businesses and is considered theft in the eyes of the IRS—and a federal offense.

The IRS is zeroing on companies that misclassify ‘employees’ as independent contractors by issuing them a 1099 instead of a W-2 to avoid reporting wages. These companies are essentially cheating the government out of the withheld portion of paychecks including social security taxes.

Trouble with delinquent employer taxes can be the downfall of many otherwise successful businesses as the IRS is very aggressive in their collection attempts for past due payroll taxes. The IRS not only has broad power to seize and liquidate, but it can also shut a business’ doors without a court order, seize equipment, intercept customer payments, and levy staggering financial penalties.

Since the IRS has prioritized business tax audits and the collection of unpaid payroll taxes and employment taxes, it has also accelerated the notice process. And if the IRS determines that employee misclassification has occurred, it can order an employer to provide benefits retroactively.

We can expect the number of IRS audits to continue to rise for small-business owners in 2010. About 25 to 30 percent of our tax-relief clients are small businesses with tax problems, so I know how important it is to avoid or quickly resolve IRS audits or other tax problems that could be detrimental to your business.

Tax Resolution Services, Co. is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Their expert team of tax attorneys, CPAs, and Certified Tax Resolution Specialists has a success rate of 90% – second to none in the industry – and an Offer in Compromise Settlement Rate of $0.11 on the dollar. For more information or to receive a FREE tax relief consultation, visit or call 866-IRS-PROBLEMS.

More Tax Help, IRS News and Tax Relief Tips:

  1. Michael Rozbruch Interviewed in Opportunist Magazine
  2. Five Tips to Resolving Payroll Tax Problems
  3. Ask the Certified Tax Specialist – Small Business Back Taxes
  4. Finding Tax Help for IRS Tax Debt
  5. Tax Resolution Expert-Five Reasons to Hire One

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One Response to “IRS Tax Relief Is Vital for Businesses Audited for Worker Misclassification”

  1. IRS to Audit 6,000 Businesses at Random and Take Back What It’s Owed in Unpaid Employment Taxes | Tax Attorney and Tax Resolution Services: IRS Help Blog Says:

    [...] What It’s Owed in Unpaid Employment Taxes Earlier this year, the Internal Revenue Service began employment tax audits of approximately 6,000 U.S. companies to provide statistical data for the National Research Program study of employment tax compliance. [...]

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