IRS Concerned About Nanny tax

A new tax report issued by the IRS calls attention to taxpayer non-compliance with "nanny" provisions.

Statistics indicate only about 300,000 of the 122 million-plus individual income-tax returns filed last year included Schedule H - the form used to pay social security and Medicare taxes.

In 1999, the law mandates that anyone who pays a household worker $1,100 or more must pay Social Security and Medicare taxes through Schedule H. This minimum will rise to $1,200 for the 2000 filing year.

Experts familiar with this widely-publicized topic believe many don't file because they feel it is unnecessary, too much paperwork, and of course, that they won't be caught. Even though the provisions were enacted in 1994, the IRS says it is continues to look at the nanny tax very closely.

You may like these other stories...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.