The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

Tax Court decision opens up way for employers to challenge payroll tax obligations

Previously, we began looking at the issue of worker classification and the costs employers can face when they make mistakes in this area. As we noted, employers who misclassify workers may end up having to pay taxes twice if they are unable to provide proof that an employee paid the required taxes.

In many cases where an employer is faced with additional costs due to worker misclassification, the employer chooses to settle with the IRS for reduced tax rate. Challenging the IRS is possible, but it is often too costly and time-consuming. That being said, a recent tax case may make it a bit easier for employees to pursue a case in court if they are willing to foot those costs. 

Under a recent decision from the U.S. Tax Court, federal tax privacy laws do not prohibit the IRS from disclosing the income tax compliance of workers. This decision could potentially be used to allow employers to request records from the IRS to determine whether misclassified works paid the necessary taxes. Experts say it isn’t likely the case will have a far reach since settling is usually going to be a more cost-effective option, but it does open up a potential avenue for employers to go up against the IRS.

As with any tax issue, careful planning and attention to detail can go a long way in complying with employment and payroll tax obligations. When issues do arise, especially involving disputed areas of law or the decision between settling with the IRS or pursuing a court challenge, businesses can and should work with an experienced attorney to ensure their legal rights are well-represented.

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Law Office Map

Payment Cards