Discussion:IRS audit on wages
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Revision as of 18:09, 8 September 2009
Discussion Forum Index --> Basic Tax Questions --> IRS audit on wages
Discussion Forum Index --> Tax Questions --> IRS audit on wages
Taxman3132 (talk|edits) said: | 4 September 2009 |
| i have a client who is undergoing a audit from IRS. They are asking for proof of payment for the employees. all of the employees have direct deposit.
They have quickbooks payroll services. The IRS is also asking for a w-4 for all employees. does anybody have any suggestions on what IRS will accept as proof of payment(direct deposit)? If all w-4's cannot be produced at the time of the audit--what are the consequenses? | |
| 4 September 2009 | |
| proof of payment would be copies of the payroll reports (listing check or debit numbers) plus a copy of the bank statement showing the withdrawals/checks/debits clearing | |
Wonder Woman USA (talk|edits) said: | 4 September 2009 |
| How did they ever do payroll without having a W-4 on file? I doubt the IRS would be very sympathetic to the business owner not having them. | |
| 4 September 2009 | |
| On the first item, unrelated third party documentation is pretty strong evidence in an exam. As for the W-4's, my advice is - do NOT create them after-the-fact, but you should get a W-4 for anyone that is missing one for the future. If they did not have a W-4, did they spin a wheel to determine filing status and exemptions or was there some input document or transmittal document that was set to Quickbooks? | |
| 4 September 2009 | |
| I use QB enhanced payroll and they confirm the direct deposits that were transmitted. | |
Mikex2e7n5 (talk|edits) said: | 8 September 2009 |
| Conswquinces MIGHT be getting tagged for income tax withholding on basis of Single with Zero dependents. Then will have to go the Form 4669 and 4670 route to get some of those amounts abated. | |
| 8 September 2009 | |
| You indicated they used a service as opposed to just software. If that is the case, it seems to me like the service would have required W-4 type information be given to them in order to setup the employees in their system. Is that the case or did you misspeak when you said "service"? | |
Death&Taxes (talk|edits) said: | 8 September 2009 |
| I have seen New York State make the type determination Mike speaks about because there were no W-4 forms on record.
I agree that something doesn't add up here. | |
| 8 September 2009 | |
| That is the problem having these drive-by questioners who ask a question and then provide no followup to questions asked of them. | |
