IRS Scrutiny of Employment Tax Compliance Continues
The IRS continues to send audit letters to U.S. businesses and organizations as part of the Employment Tax National Research Project (NRP) . Just because your organization may not have received a letter yet doesn’t mean it won’t. Only 2,000 such letters have been sent to date, with 4,000 still to come over the next two years. As report over at the CFO Zone : The NRP is the first the IRS has undertaken in 25 years. During that time, the agency noted, business practices regarding employment taxes may have changed significantly, prompting the need for study. In particular, the IRS is looking for data that will allow. Read More.
TIGTA Report Calls for Greater Enforcement in Tax-Exempt Sector
The Treasury Inspector General for Tax Administration (TIGTA) recently cited “tax compliance initiatives” as one of the three biggest challenges facing the IRS in the year ahead. In its report, Management and Performance Challenges Facing the Internal Revenue Service for Fiscal Year 2010 , tax-exempt entities were the only segment of taxpayers specifically identified under the “compliance” category. The report noted “more than $15 trillion in assets currently controlled by tax-exempt organizations or held in tax-exempt retirement programs and financial instruments” and stressed the “importance of maintaining a strong enforcement presence in the tax-exempt sector to ensure charitable organizations are not used for noncharitable or illegal purposes, including financing terrorist activities.” Click here to read the full report.
Final Regs on Application of Section 409A Bring Significant Changes
Upcoming final regulations for section 409A compliance affect each of the following areas: