Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
IRS Increases Scrutiny of Small Businesses
Author: Scarinci Hollenbeck, LLC
Date: October 15, 2013
Key Contacts
Back
The Internal Revenue Service has initiated a large campaign to crack down on offshore tax evasion and other egregious tax law violations that could result in large recoveries of hidden tax income, penalties, and interest. However, the IRS is also increasing its focus on small business tax practices, even if the potential for recovering sizable payments is small, a new analysis reveals.
IRS and Justice Department representatives recently spoke at the American Bar Association Sections of Taxation and Real Property Fall CLE Meeting, during which time they affirmed that federal tax agencies are taking on a higher share of smaller criminal employment tax cases, Bloomberg Law reports. Employment violations by small businesses range from failure to make Medicare and Social Security payments to misclassifying employees as independent contractors. Panelists theorized that larger corporations have sufficient resources and legal support to ensure maximum compliance with employment tax laws. However, they noted that smaller companies with fewer financial, tax and legal support may be more likely to commit employment missteps.
“Often you will see an employer who has a course of conduct over quite a long period of time,” Margaret Leigh Kessler, assistant chief of the Western Criminal Enforcement Section, Tax Division at the Department of Justice, told Bloomberg. “They are taking aggressive action to actively hide assets once the IRS has determined they are not complying with their employment tax obligations [and] they’re lying to the IRS, who is looking into their employment tax.”
According to a separate report in Businessweek, the IRS recommended roughly 3,700 prosecutions for various employment law violations for the year ending September 2012. The analysis also suggests that certain sectors are more likely to be audited than others – such as construction contractors and real estate rental agents – which are more likely to attract federal tax agencies’ attention.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.