Annual exclusion gifts offer an easy way to reduce your estate. Stripper wells qualify for lower percentage depletion this year, IRS says. A property tax reduction program for seniors has a fed l tax bite. Their tax bills were credited at the state's minimum-wage rate for the number of hours that they served. Amount of the tax abatement is income , the Service privately says.
FICA tax is also due.
And if the municipality pays the seniors portion of FICA for them, that amount will also be treated as taxable income. The Service is set to do more payroll tax audits of businesses. Congress has scolded the agency for its slow response to published reports of employers protesting the tax system by refusing to withhold on workers. The IRS got the message and made employment tax compliance a top priority. Won't hesitate to criminally prosecute any cases where fraud is involved.