IRS to Step Up Pressure on Non-Withholders

The IRS plans to announce soon its intention to investigate several businesses that have been publicly proclaiming they do not withhold payroll taxes on wages paid to their employees but instead pay their employees 100% of the wages earned.

Several companies participating in this tax boycott have declared their anti-tax position on the Internet, listing their names on various Web sites devoted providing a legal basis for the boycott.

The IRS has declared its intent to pursue business owners who brag that the tax laws do not apply to them. Some of these business owners as well as their tax advisers will be prosecuted for tax evasion and other crimes, according to Mark E. Matthews, chief of the IRS criminal investigation division.

In addition, the IRS will announce incentives to employees to turn in employers who do not abide by the tax laws. According to a recent report by the New York Times, the IRS plans to focus on those businesses that will generate the most tax revenue to the government.

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