Dear Client:

We are in an era of unprecedented budget crises at both the federal and state levels.  Given this environment, the Internal Revenue Service (IRS) announced that it is implementing a national research program aimed at auditing payroll tax returns; the Department of Labor (DOL) issued a statement that it will be stepping up its audits of companies and putting more emphasis on trying to identify misclassified workers; and, finally, the State of Maryland intends to further expand its audits of unemployment tax returns in an attempt to identify misclassified workers.