Senate Appropriations Committee chair Barbara Mikulski, D-Md., urged Internal Revenue Service Acting Commissioner Steven T. Miller to do more to keep unscrupulous payroll service providers from cheating small businesses out of unremitted withholding taxes during an IRS budget hearing.
Mikulski discussed the problem with Miller and Treasury Inspector General for Tax Administration J. Russell George during Wednesday’s hearing before her committee’s financial services subcommittee. Mikulski introduced legislation last month to protect small business owners from tax theft and fraud by payroll service providers. Several Maryland small businesses that have used the services of a payroll service provider believe their provider failed to pay, or made only partial payments, of federal and state withholding and unemployment taxes.
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