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IRS may be missing billions in taxes from employer underreporting | Accounting Today

Accounting Today

The Internal Revenue Service could be foregoing billions of dollars in potential taxes because tens of thousands of employers are underreporting the amount of their workers’ wages and withholding taxes, according to a new report. The report, from the Treasury Inspector General for Tax Administration, examined the IRS’s Combined Annual Wage Reporting Program, which compares the employee wage and withholding information reported to the IRS on employment tax forms with the withholding documents filed by employers with the Social Security Administration. The CAWR Program aims to make sure employers report the correct amount of employment taxes and federal income ...