The IRS has launched its new Early Interaction Initiative, which is designed to quickly identify employers who are falling behind on their payroll taxes and then help them to catch up on their payment and reporting responsibilities. The IRS will offer helpful information and guidance through letters, automated phone messages, and in some instances, a visit from an IRS revenue officer.
“Employers play a key role in our tax system, and we want to offer them the information and assistance they need to carry out that responsibilities,” said IRS Commissioner John Koskinen. “With early interaction, we will be able to offer help weeks or even months sooner, when it can often do the most good.”
In the past, IRS’s first contact with an employer having payment difficulties often did not occur until after the employer’s unpaid tax obligation had already started to spiral out of control. To help employers avoid this situation, the new IRS initiative will monitor deposit patterns and identify employers whose payments decline or are late. Employers identified under this initiative may receive a letter reminding them of their payroll tax responsibilities and asking that they contact the IRS to discuss the situation. In addition, some employers may receive automated phone messages from the IRS providing information and assistance. Where appropriate, an IRS revenue officer will also contact some of these employers at their place of business.