Dozens of businesses across the U.S. have found themselves in trouble with the IRS following a crackdown on employment tax compliance.

A nationwide enforcement and education initiative in recent weeks led to IRS revenue officers visiting approximately 100 companies suspected of “serious issues with employment tax compliance.” Those visits resulted in several dozen legal actions and the discovery of some organizations with potential noncompliance issues, according to an IRS news release.

IRS officials informed business owners about ways to catch up with back payroll taxes, steps to ensure payroll taxes stay current and the potential legal ramifications of noncompliance.

“Enforcement is never our first resort, but protecting this significant source of revenue to the nation deserves our best efforts, including reaching out to help businesses help themselves,” said Darren Guillot, Director of IRS Field Collection Operations, one of two divisions within the IRS that took part in the enforcement and education campaign that ran from March 25 to April 5. The IRS Criminal Investigation division also was involved in the enforcement ramp-up.

The enforcement period included 12 indictments, six individuals or businesses being sentenced for crimes connected to payroll taxes and the execution of four search warrants, according to the IRS. Some two dozen more enforcement actions are planned in the weeks ahead.

The IRS estimates payroll taxes employers withhold account for more than 70 percent of all of the IRS-collected revenue, making noncompliance one of the biggest issues facing the U.S. tax system.

But employers don’t have to take on employment tax compliance alone.

Professional employer organizations, such as Syndeo, help employers ensure compliance by depositing and reporting employment taxes accurately.

Syndeo stays up to date on all the latest changes to the Payroll Tax Law and is diligent about making accurate and timely payments.

“We also make sure clients’ tax accounts are set up properly,” says Becky Tolle, Syndeo’s tax manager.

However, employers still are responsible for the timely filing of employment tax returns and payment of employment taxes, she says.

Contact us to learn more about how Syndeo can assist your organization with payroll tax compliance.

About us: As the Heartland’s leading employer services company, Syndeo partners with local business owners to help them minimize risk, improve efficiency and maximize profitability allowing them the freedom to focus on growth and fulfilling their mission. Syndeo fulfills its mission by taking on all of the HR responsibilities for our clients’ workforce, including employee relations, benefits, risk management and payroll.


~Josh Heck, Marketing Manager, Syndeo