In an effort to assist employers in understanding and meeting their payroll tax obligations, the IRS has initiated an Early Interaction Initiative in which the IRS will be alerted when an employer has a reduction in payroll tax deposits. Some employers will receive letters of inquiries asking the employer to contact the IRS with an explanation regarding the decline in payroll tax deposits. Employers should reply promptly to ensure their compliance and to reduce or eliminate potential penalties if the employer has made an error.

To learn more, visit the IRS’ website.