IRS Payroll Tax Audits – Affordable Payroll Audit Specialists, Former IRS, Ft.Lauderdale, Miami, Palm Beaches

by Fresh Start Tax | May 17, 2013 | Payroll Tax Audits

IRS Payroll Tax Audits – Affordable Payroll Audit Specialists, Former IRS, Ft.Lauderdale, Miami, Palm Beaches   954-492-0088

 
 
We are comprised of Tax Attorneys, Certified Public Accountants, and former IRS agents and managers who worked out of the local South Florida tax offices for over 60 years.
Our firm have conducted IRS payroll tax audit when working for the Internal Revenue Service. We  know all the tax policies, tax systems, and tax strategies that will be employed by the Internal Revenue Service during an IRS payroll tax audit.
We are tax experts in dealing with IRS payroll tax matter audits because of our inside information that we have on the Internal Revenue Service during our years of work experience in the local South Florida IRS offices.
 
IRS payroll audit matters are serious to the Internal Revenue Service because this is not a tax but actually a trust fund, that is, money that was held in trust to be turned over to the US government.
 
The IRS can go so far as assessing the persons individually responsible for the nonpayment of the payroll tax and individually assessing, therefore going beyond the corporate or business vale to assess and collect taxes from all those responsible for nonpayment. This process is called the assessment of the trust fund tax and is found under code section 6672.
The Internal Revenue Service has special agents to work IRS payroll tax audits. They are trained specifically for the sole purpose of IRS payroll tax audits.
If you  have received an IRS notice her letter of a potential IRS payroll tax audit contact us today for free initial consultation and review of your case and hear the truth about your situation.
We are A+ rated by the Better Business Bureau and have been in private practice right here in South Florida since 1982 our firm has a total of 206 years of professional tax experience.
 

The IRS has a complicated set of guidelines for determining whether a worker should be treated as an employee or independent contractor for payroll tax purposes.

 
 Revenue Ruling 87-41: The Twenty Factors
To help determine whether a worker is an employee under the common law rules, the IRS identified 20 factors that may indicate whether the employer can exercise enough control to establish an employer-employee relationship. These factors, set forth in Revenue Ruling 87-41, were based on the circumstances that the courts identified and relied upon to decide whether an employment relationship existed.
 
Important Note –  Not all the factors must be present to find an employee/employment relationship, but the factors are guides to use to assess the likelihood as to whether an individual is an employee or an independent contractor.
 
(1) Instructions.
An employee must comply with instructions about when, where and how to work. The control factor is present if the employer has the right to require compliance with the instructions.
(2) Training.
An employee receives on-going training from, or at the direction of, the employer.
Independent contractors use their own methods and receive no training from the purchasers of their services.
(3) Integration.
An employee’s services are integrated into the business operations because the services are important to the business. This shows that the worker is subject to direction and control of the employer.
(4) Services rendered personally.
If the services must be rendered personally, presumably the employer is interested in the methods used to accomplish the work as well as the end results. An employee often does not have the ability to assign their work to other employees, an independent contractor may assign the work to others.
(5) Hiring, supervising and paying assistants.
If an employer hires, supervises and pays assistants, the worker is generally categorized as an employee. An independent contractor hires, supervises and pays assistants under a contract that requires him or her to provide materials and labor and to be responsible only for the result.
(6) Continuing relationship.
A continuing relationship between the worker and the employer indicates that an employer-employee relationship exists. The IRS has found that a continuing relationship may exist where work is performed at frequently recurring intervals, even if the intervals are irregular.
(7) Set hours of work.
A worker who has set hours of work established by an employer is generally an employee. An independent contractor sets his/her own schedule.
(8) Full time required.
An employee normally works full time for an employer. An independent contractor is free to work when and for whom he or she chooses.
(9) Work done on premises.
Work performed on the premises of the employer for whom the services are performed suggests employer control, and therefore, the worker may be an employee. Independent Contractor may perform the work wherever they desire as long as the contract requirements are performed.
(10) Order or sequence set.
A worker who must perform services in the order or sequence set by an employer is generally an employee.  Independent Contractor performs the work in whatever order or sequence they may desire.
(11) Oral or written reports.
A requirement that the worker submit regular or written reports to the employer indicates a degree of control by the employer.
(12) Payments by hour, week or month.
Payments by the hour, week or month generally point to an employer-employee relationship.
(13) Payment of expenses.
If the employer ordinarily pays the worker’s business and/or travel expenses, the worker is ordinarily an employee.
(14) Furnishing of tools and materials.
If the employer furnishes significant tools, materials and other equipment by an employer, the worker is generally an employee.
(15) Significant investment.
If a worker has a significant investment in the facilities where the worker performs services, the worker may be an independent contractor.
(16) Profit or loss.
If the worker can make a profit or suffer a loss, the worker may be an independent contractor.  Employees are typically paid for their time and labor and have no liability for business expenses.
(17) Working for more than one firm at a time.
If a worker performs services for a multiple of unrelated firms at the same time, the worker may be an independent contractor.
(18) Making services available to the general public.
If a worker makes his or her services available to the general public on a regular and consistent basis, the worker may be an independent contractor.
(19) Right to discharge.
The employer’s right to discharge a worker is a factor indicating that the worker is an employee.
(20) Right to terminate.
If the worker can quit work at any time without incurring liability, the worker is generally an employee.

IRS Payroll Tax Audits – Affordable Payroll Audit Specialists, Former IRS, Ft.Lauderdale, Miami, Palm Beaches