Payroll Tax Audits

If your business has workers that you treat as independent contractors the IRS may not agree. The IRS can conduct a payroll tax audit, and it may decide that the workers are employees instead of independent contractors. How does the IRS determine if your workers are independent contractors or employees? Generally the IRS looks at a 20 factor test. [Link]. The 20 factor test is complicated, but our tax lawyers can help you gather the evidence needed to show the IRS that your workers are independent contractors and not employees. If the IRS does not agree, our tax litigation attorneys can appeal your case with the IRS Appeals Division, or represent you in Court.

Even if you can not prove that your workers are independent contractors almost 30 years ago Congress passed legislation to help business owners with workers who didn't qualify as independent contractors under the traditional 20 factor test. This law is sometimes know as safe harbor relief or Act Section 530 relief. Our tax lawyers can help determine if you qualify. If you do we can handle your tax dispute either with the IRS, or if necessary our tax litigation attorneys can sue the IRS in Tax Court. Even if you don't qualify for safe harbor relief or Act Section 530 relief, the IRS has a special settlement program that allows their agents to settle cases for less than the full amount due even if your business has the money to pay in full. This program is know as the Classification Settlement Program, and is available to business who meet some, but not all of the tests to qualify for Act Section 530 relief. During your payroll tax audit, or even on the appeal of your payroll tax audit our experienced tax lawyers can negotiate with the IRS on your behalf to reduce your payroll tax debt through the IRS Classification Settlement Program.

Call us now at (512) 3380-LAW or contact us online to make an appointment, and find out how our tax attorneys can help.