Alternative Finances

IRS: Leasing Organizations Need To Pony Up

Death and taxes might be two constants in life, but if the International Revenue Service has anything to say about it, the details of one of them can change. Unfortunately, the IRS has not found a way to prevent death, but it recently announced an alteration to how companies can handle their payroll taxes.

According to a Business Management Daily article, the IRS announced new regulations that leasing organizations might be liable for their clients’ payroll taxes.

“Leasing organizations fall through the payroll liability cracks because they don’t control the payment of wages, aren’t agents who have obtained an approved Form 2678 or aren’t payroll reporting agents, such as payroll service bureaus,” the news source explained.

Additionally, a new report from the Treasury Inspector General for Tax Administration (TIGTA) found that the IRS’s penalty actions against employers who don’t remit payroll taxes are usually late an not sufficient.

A recent Accounting Today article explained that the TIGTA recommended that the IRS emphasize to group managers their responsibilities to monitor Trust Fund Recovery Penalty (TFRP) cases and ensure that revenue officers take timely TFRP actions, as well as enhance TFRP communication and training.

The news source reported that the IRS officials agreed with the TIGTA’s recommendations and plan to take the necessary actions.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

 

 

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