United States

IRS will begin to contact employers that fail to deposit payroll taxes


It is not uncommon for employers to experience issues in remitting amounts due for payroll taxes. Often, these issues go unnoticed by the employer and the IRS for long periods of time. As a result, corrective actions may occur well after payroll tax returns are due or filed and may result in additional tax and penalties.

In an effort to reduce these issues, the IRS has launched an initiative to monitor deposit patterns, identify employers whose payments appear to be declining, late or unpaid, and proactively contact those employers. These employers will receive letters and automated phone calls from the IRS to remind them of their payroll tax responsibilities.

In the event the IRS contacts your company on a payroll tax matter and indicates some action on your part is required, you should immediately contact your tax advisor to discuss the appropriate response.

Keep in mind that the IRS has been the victim of identity theft scams and schemes recently, so you should take care to ensure any contact is legitimate before providing any data. 

Nick Passini