I am being audited by the labor department. I owe payroll tax from the first quarter of 2011. I have been working with the IRS and the case manager asked that I file a hardship letter which I have done and I request a payment plan, which I have also done. I am current as of 2nd quarter 2012, but still owe that 1st quarter from 2011. I also have a couple of employees which I owe some money to. They have been patient because they are long term employees and trust we will get out of this based on the new purchase orders we recently recieved. Now I am being audited by the department of labor. What should I do and do I need a lawyer?
State/Country relating to question: New Jersey
Hello, my name is XXXXXX XXX I will help you with your question today.
First I would like to ask you some preliminary questions.
Why were you being audited in the first place? Did NYS DOL recategorize your independant contractors into employees? What type of business do you have?
Let me know when you can talk and I'll return.
Hello, how are you? Are you there?
I am a NYS CPA as well as a CIA, CRMA and Licensed Real Estate Agent.
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Hello, yes, it's best to get a lawyer and even better a lawyer who is also a CPA. I can tell you more about this if you tell me more about the situation. What kind of business do you run? What type of employees do you have? What is the case against you? Please answer these questions and I'll tell you more. Does your chat function work? That would make the conversation much easier.
The auditor will be here today at 1pm. I do not know why I am being audited. I asked her over the phone but she said she had just recieved my file and did not know yet. I am a disadvantaged minority owned,woman owned small business. I manufacture components for the aerospace and automotive industry. I do not do my payroll myself, I have a payroll company. All employees recieve W2's.
Perhaps this is all a misunderstanding then - they cannot audit you based on no findings. Whatever she says or happens - do not give me any affirmative answers yes or no. Ask for an extension to review the books and look for documents.Most audits are about incorrect classification of employees vs employees or unpaid unemployment tax.Sometimes workers comp can be an issue. Once you sit with them get back to me and we will have an onlineConversation once you know more details.