Audit Payroll Help From Joe Mastriano, CPA.
Knowing how to handle a payroll tax audit is a bit different than regular 1040 income tax audits. These audits involve federal withholding, social security, and medicare tax all withheld from employees’ paychecks. This is reported on IRS form 941. It involves the federal unemployment tax reported on federal IRS form 940. There are various types of penalties, and there there is interest associated with an untimely filing of reports & payment of taxes as they become due. There is also the issue of assessing trust fun taxes, which is the remaining FICA, medicare and withholding tax after the application of any payments. Knowing the potential adjustment and the rules to avoid personal liability has helped us save hundreds of thousands of dollars for our clients where others have failed. This is one of our firm’s most successful services. It’s one of our “unique solutions” offered from Joe’s 30+ years of experience.
Payroll Tax Audits Can Lead to Other Return Items
As always, when returns are audited, we recommend discussing the scope with the auditor and discussing the necessity to prepare to defend other items. This is what we do as part of our employment audit representation.
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