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Guidance has been issued by the IRS's Small Business/Self-Employed Division (SB/SE) to its Collection department employees regarding collecting taxes that were due to be paid, but were not paid, by a PEO with respect to wages paid before April 1, 2014. In cases where a PEO has failed to pay employment taxes prior to the deadline the IRS should attempt to identify the client(s) with the unpaid liabilities and assess the appropriate amount of employment taxes. Any corresponding tax liability previously assessed against the PEO is considered excessive in amount, or erroneously assessed, and must be decreased. Form 941-X or amended Form 940 must be submitted in order to remove the excessive or erroneously assessed tax of the client(s), along with separate forms prepared by IRS Collection. 


For more information or questions about this new guidance, please contact a member of the firm's National PEO Practice in Detroit 313 964 1040, Farmington Hills 248 355 1040, or Sterling Heights 586 254 1040.