Steps to Take to Minimize a Client's Employment Taxes as Proposed on Audit
The Internal Revenue Service has become concerned with the degree of voluntary compliance in the employment tax area and has significantly increased the number of audits. If, as a result of an audit, assessments are made for all years not barred by the statute of limitations, the result can be disastrous. Not infrequently, the revenue agent's proposed assessment will result in double taxation where the employee has already paid his income and social security taxes. By taking advantage of several relief provisions available under the Code, an employer may be able to avoid this double taxation and substantially reduce, and in some cases virtually eliminate, this liability for the additional taxes proposed.