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IRS inspector general: ‘Egregious’ payroll tax evasion is exploding

By Joseph Lawler
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IRS inspector general: ‘Egregious’ payroll tax evasion is exploding

Payroll tax noncompliance is exploding, the IRS inspector general for taxes warned in a report made public Wednesday.

The inspector general said that as of the end of 2015, 1.4 million employers owed approximately $45.6 billion in unpaid employment taxes, interest and penalties. Three-quarters of that was owed by employers who hadn’t paid payroll taxes in a year. That group of non-compliers has tripled in the past 17 years.

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