The Internal Revenue Service and more than two dozen state workforce agencies have agreed to share employment tax examinations results.
The agreements, part of the Questionable Employment Tax Practice initiative, will provide a centralized, uniform means for the IRS and state employment officials to ensure that businesses comply with federal and state tax requirements.
“Combining resources will help IRS and the states reduce fraudulent filings, uncover employment tax avoidance schemes and ensure proper worker classification,” said Kathy Petronchak, Commissioner of the IRS Small Business/Self-Employed Division.
This makes Colorado the 29th state to enter into an IRS information-sharing agreement.
Other states include Arizona, Arkansas, California, Connecticut, Hawaii, Idaho, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington and Wisconsin.