The U.S. Senate has passed legislation to give more protections to businesses victimized by payroll services companies that failed to pay their clients' federal and state taxes or committed other fraudulent acts.
The legislation, championed by Maryland Sen. Barbara A. Mikulski, comes in the wake of accusations last year against Bel Air-based payroll services firm AccuPay Inc. for failing to pay state and federal tax employee withholding taxes for as many as 600 clients.
According to Mikulski's office, provisions in Omnibus Appropriation Act of 2013 approved by the Senate last week will provide protections to small businesses by requiring the IRS to send dual notification to a business when its address has been changed by a third party.
The legislation will also provide for assistance to defrauded businesses that need relief from tax liability by requiring the IRS to give greater consideration to what are known as Executive Tax Administration Offers of Compromise.
In April 2013, Mikulski held a roundtable with Bel Air's DuClaw Brewery, which had filed a claim of tax fraud against AccuPay, and other local small businesses to discuss the impact of payroll services tax fraud.
Following the meeting, Mikulski introduced legislation, The Small Business Tax Fraud Prevention Act, to protect small businesses from becoming victims of payroll services provider fraud.
Read more: http://www.baltimoresun.com/news/maryland/harford/belair/ph-ag-payroll-services-providers-regulation-0122-20140121,0,1048503.story#ixzz2rFuZW2nu
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