Check's in the mail? report finds employers owe billions in federal payroll taxes

California CPA, Sept, 2008

In a report from the Government Accountability Office, congressional investigators say 1.6 million businesses did not send taxes to the IRS regarding employees' wages, Social Security and Medicare payments.

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Employers owe the IRS about $58 billion, over a 10-year period, in federal payroll taxes from employees' wages, according to the report, which adds that the number of employers with substantial payroll tax debt has ballooned for various reasons, including IRS dependence on the voluntary compliance of companies, as well as business owners defrauding the government or skipping payments when trying to survive a tight quarter.

Download the report at www.gao.gov/new.items/d081034t.pdf.>

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