This office does not handle:

  • Unemployment Insurance Benefits (UI)
  • State Disability Issues (SDI)
  • Worker Compensation Issues
  • EDD Overpayments

Over 50 Years In Practice
Over 500 Articles

Ask The California Employment Tax And Payroll Tax Attorney – The IRS Joins Forces With The Department Of Labor To Promote Employer Compliance

By Robert S. Schriebman
2023

Introduction

In December 2022, the IRS and the Department of Labor (DOL) entered into a Memorandum of Understanding. This is a joint initiative to improve compliance with laws and regulations administered by the DOL-Wage and Hour Division and the IRS Small Business/Self Employed Specialty Employment Tax. There will be enhanced information sharing and other collaboration.

Memorandum of Understanding (MOU)

The MOU will help both the IRS and the DOL to leverage existing resources with a view toward promoting employer compliance with obligations to properly pay employees and to pay employment taxes. Teams will be comprised of IRS and DOL members who will meet periodically to share information.

Sharing information means that DOL violations will be reported to the IRS for purposes of conducting compliance and worker status audit. Likewise, IRS violations will be reported to the DOL.

Both the IRS and the DOL may coordinate outreach activities relating to worker classification and other issues of mutual interest. Each agency will disclose data from the agency’s System of Records. The IRS will maintain the employment tax data provided by the DOL in an information sharing arrangement.

Both agencies will establish a methodology for exchanging investigative leads, complaints, and referrals of possible violations, to the extent allowable by law and policy.

Conclusion

It is clear that the new emphasis at the IRS will be payroll tax compliance and the proper classification of workers. The DOL and the IRS will be referring cases to each other for the imposition of stiff assessments and penalties. In addition to sharing information at the federal level, the IRS and DOL have information sharing arrangements with the State of California and specifically the EDD.

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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.

Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

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