In the course of a state unemployment system payroll audit for tax year 2007, a $3,000 payment made to the employee was deemed to be salary. As the maximum SUTA tax was already paid on this employee for the year, there was no additional SUTA tax due.
But this was not included in the employee's original W-2, and we want to go ahead and amend the federal and state returns to include this in income to avoid further penalties and interest.
Instructions say to file 941C with the current 941 employer return and issue a W2C for the prior year. No problem under normal circumstances. However, ...
since I know the state has entered into an agreement with the IRS to share such audit information, do I assume they have done/will do it? I have the state report and it is not mentioned. And if so, will the IRS contact and/or adjust the 2007 return for employer and/or employee without me having to do anything? I want to be proactive on this, but avoid hassles with duplications.
But this was not included in the employee's original W-2, and we want to go ahead and amend the federal and state returns to include this in income to avoid further penalties and interest.
Instructions say to file 941C with the current 941 employer return and issue a W2C for the prior year. No problem under normal circumstances. However, ...
since I know the state has entered into an agreement with the IRS to share such audit information, do I assume they have done/will do it? I have the state report and it is not mentioned. And if so, will the IRS contact and/or adjust the 2007 return for employer and/or employee without me having to do anything? I want to be proactive on this, but avoid hassles with duplications.
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