Anthony Sykes & Company

   Although outsourcing to third parties can streamline business opportunities, the IRS reminds employers that they are liable for paying tax liabilities. Recent accusations have inquired individuals & companies who-act under the guise of a payroll service provider, have stolen funds intended for payment of employment taxes make it important that employers who outsource payroll understand the following information. A. It is the responsibility of the employer for the deposits and payment of federal and tax liabilities. If the third party fails to make the federal tax payments the IRS may assess penalties and interest. The employer is liable for all taxes, penalties and interest due. However, the IRS can also hold the individual liable for certain unpaid federal taxes. B. If the employer has an issue with an account, the IRS will send a correspondence letter to the address they have on record. And they strongly suggest you do not change the address of the payroll service provider

   At the beginning of next year insured group health plans will have to provide coverage for behavioral health treatments such as pervasive developmental disorders or Autism. And California included that health plans must provide coverage to same sex spouses or domestic partners regardless of where employers principal place is located. Also, employers who have group plans cannot discriminate against participants on the basis of gender identity or gender expression. California is adding new changes to health care, taxes etc. Again, at the beginning of 2012 the are going to start a New-Hire Procedure, which in details ask employers to provide each employee at the time of hiring written notices that detail certain information related to wages, the employer's contact information and employer's workers' compensation insurance carrier.

 The IRS Taxpayer Advocate Service is temporarily changing the criteria used for accepting cases and said it would no longer deal with cases that involves the IRS delay of processing certain tax documents. TAS said they will focus on taxpayers who need the most assistance and will temporarily limit the acceptance of cases involving delayed processed tax documents.      The TAS will determine who will meet the criteria and who they consider is experiencing an economic burden.

    IRS has announced that there will be help from the IRS for individuals and small businesses struggling to meet their tax obligations. To help people get a fresh start they plan to change adjustments to IRS Lien policies in a few ways. 1. By increasing the dollar threshold when liens are issued, resulting in fewer tax liens. 2. They want to make it easier for taxpayers to obtain lien withdrawals after paying a tax bill. 3. Withdrawing liens in most cases where taxpayers agree to a Debit Installment Agreement. As for small businesses, IRS would create easier access to Installment Agreements for struggling businesses. Last, the IRS wants to expand the streamlined Offer in Compromise to cover more taxpayers.

   This week the IRS has announced that it would be required for paid tax return preparers to file a due diligence checklist Form 8867 with any federal returns claiming the Earned Income Tax Credit. In essence it was designed to reduce errors on returns claiming the EITC. This checklist will help preparers be accountable for what they enter in when filing the EITC for their clients.The EITC benefits low-and moderate-income workers and working families. However, the credit varies by income, size and filing status. Taxpayers can get it even if they owe no tax but they must be eligible.