DOL to Add Still More Inspectors in 2011

Testifying before a House subcommittee, Department of Labor (DOL) Secretary Hilda Solis recently detailed plans for fiscal 2011 to use $1.7 billion out of a budget of $116.5 billion, along with 10,957 employees out of 17,800 total, for what she called "worker protection activities." Plans also call for adding another 90 inspectors to the Wage […]

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IRS to Audit 6,000 Firms on Worker Misclassification

Strapped for cash, the Internal Revenue Service has announced plans to audit 6,000 businesses, both large and small, with a focus on worker misclassification, fringe benefits, reimbursed expenses, and executive compensation. If the IRS discovers personnel listed as independent contractors who are in fact company employees, the results could be costly. The firm could owe large […]

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IRS to Audit 5,000 Random Employers Beginning Next Month

If you’ve been underpaying and/or under-reporting your company’s payroll taxes, the IRS wants to know–and collect what’s due. With the annual "tax gap" between what’s owed and what’s paid estimated at $290 billion, the Internal Revenue Service is siccing its agents on 5,000 randomly selected employers beginning in November 2009 as much for a learning […]

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Income Distribution (and Taxes) in the United States

I found this (now-purloined) graph prepared by an economist writing about health care in the United States in the New York Times. His purpose was much different than mine. I’m reproducing it to show how politicians blatantly lie every time they say they’re going to tax the wealthy and leave the middle class alone. Yeah, […]

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What Takes 7.6 Billion Hours to Produce Each Year?

Now, if you think about it, there’s only one institution in our nation capable of wasting that many hours of people’s time…our good ol’ government. For the answer to what takes that long, think April 15. Yup, it takes all of us and our tax preparers and accountants and whoever else is involved 7.6 billion […]

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Ouch, Now That Hurts: Returned Bonuses May Be Taxable!

A tax law doctrine known as “constructive receipt” could put those AIG employees who returned their bonuses in jeopardy of having to pay taxes on them anyway. Goes like this: Constructive receipt prevents people from gaming the system, say by performing work in late 2008 and asking to be paid in 2009 to reduce tax […]

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