Last night I listened to a presenter from the IRS at the monthly meeting of the Orange County chapter of the California Society of Enrolled Agents. He knew all about the 4¢ fiasco. It appears that there might be a missing payroll return or deposit from the end of 2009. At this point this is just rumor, and the gentleman from the IRS absolutely agreed that the story made the IRS, at best, look bad.
Because of privacy rules it’s unlikely we’ll ever find out the truth behind this issue. Peter Pappas posted that, “The IRS has reason to believe that the taxpayer is not complying with other tax laws, including, but not limited to, the proper classification of employees and the accurate and timely depositing of payroll taxes.” This may be exactly what happened.