Using the Form 1023 Ez Eligibility Worksheet to find out if your current employees are eligible for a free tax audit is a relatively easy process. In fact, there are few mistakes that can be made that will prevent the IRS from finding an audit in their backlog.
Your employee was just hired at the federal minimum wage and overtime. The new job requires you to pay all of the employee’s federal taxes before they get paid. It is hard to say this does not apply to everyone who has been laid off.
You are still getting back taxes on salary from an employee who was just hired, yet you have never received their federal minimum wage or overtime wages. An employee has quit. They had a reason, and they were looking for a better paying job.
All of these reasons indicate a tax information should be available. All of these reasons indicate that the employee should be considered eligible for a tax audit. Many employees believe that the EZ-link only applies to self-employed individuals. Unfortunately, they do not realize that a Form 1023 may also apply to their current employer.
Often, the EZ-link only applies to individuals who are self-employed, but there are a few federal income tax forms that apply to self-employed individuals. One of those federal income tax forms is Form 4868. Employers may be able to claim this as a tax credit against their employee’s taxes.
Employees who received an annual vacation cash bonus recently may also be considered eligible for an audit. They are eligible if they did not receive any monies for the last three years. If you received the bonus recently, you can use the Form 1023 to prove that you received this payment.
Employees who have been laid off will also need to have the Form 1023 prepared. This will prove that they did not apply for unemployment benefits. If they applied for unemployment benefits, the Form 1023 can be used to prove that they did not receive a lump-sum payment for their unemployment benefits. If you need proof of unemployment benefits, you can simply add up the total of the unemployment payments for the last six months.
The application of these tax forms can save your business time and money. The time spent on searching for employment insurance fraud, the time spent on finding suitable employees, and the money spent on hiring new employees can all be spent more efficiently. Additionally, the time spent in preparing your employee for a potential audit can also be utilized for other things.