Tax Tips – Watch out for unscrupulous payroll providers

Description

Abstract: This issue’s “Tax Tips” notes why it’s necessary to watch out for payroll providers who may be unscrupulous. It looks at recent IRS clarification regarding meal and entertainment deductions, explaining which party, in the context of an employer-employee or customer–independent contractor relationship, will be subject to a 50% limitation on the deduction. And it discusses a Tax Court case involving dependency exemptions — a case that demonstrates the importance of filing the relevant forms with the IRS.