IRS Announces Program to Share Employment Tax Exam Results with States

By Alistair M. Nevius, J.D.

On November 6, 2007, the IRS and 29 state workforce agencies jointly announced that they have entered into agreements to share with each other the results of employment tax examinations. They hope that creating a uniform method for exchanging data will help them increase businesses’ compliance with state and federal employment tax requirements by reducing fraudulent filings, uncovering employment tax avoidance schemes, and ensuring proper worker classification.

Under the agreement, in addition to sharing information, the states and the IRS say they will collaborate on outreach and education to help businesses understand their employment tax responsibilities.

The states that have signed agreements with the Service are Arizona, Arkansas, California, Colorado, Connecticut, Hawaii, Idaho, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin.

Newsletter Articles

SPONSORED REPORT

Click-Through Nexus: Pushing the Boundaries of Sales Tax Compliance

Sales and use tax compliance has been complicated by nexus expansion. In this report, we provide an overview of this issue and include a handy state-by-state summary of click-through nexus or notification requirements.

PRACTICE MANAGEMENT

2015 Tax Software Survey

See how nearly 5,000 paid CPA tax preparers rated the strengths and weakness of major tax preparation software products they used in 2015.