Tax Reform and IRS Priorities
Part 2 of 10 Topics for Businesses to Keep an Eye on in 2014
One important topic that businesses should follow closely in 2014 is the use of tax reform in order to address the federal deficit. Specifically, there could be a potential change in the structure of S-Corps that may affect payroll tax obligations.
Also in 2014, the U.S. Supreme Court will hear arguments as to whether severance pay should be taxable or exempt from federal payroll tax. The eventual decision could potentially trigger retroactive refund claims totaling in the billions of dollars. In addition, the IRS intends to more closely examine how tips and service changes are taxed, which could have important consequences for the hospitality and food service industries as well as others where tipping is customary.
Watch this video for more about tax reform and IRS priorities. Then watch our related videos for the rest of the ten topics to watch in 2014.