Olympia Snowe: “I have previously introduced a bill to regulate payroll tax deposit agents. This bill will help to protect small…”

“I have previously introduced a bill to regulate payroll tax deposit agents. This bill will help to protect small businesses from payroll tax fraud and provide them with greater confidence when working with payroll service providers that are registered with the Internal Revenue Service and bonded or audited. In the fall of 2003, small businessman Roger Cyr, the owner of the Lily Moon Cafe in Saco, ME, learned that he was the victim of payroll tax fraud and owed $52,000 in back taxes. He was one of a number of small business owners in Maine who were forced to pay their payroll taxes twice after an unscrupulous payroll provider ran off with their tax deposits instead of making the required payments to the IRS. Unfortunately, I know that this type of payroll fraud is not unique to Maine and has also occurred in Utah, Iowa, as well as elsewhere. When payroll tax fraud occurs, many small owners, mom-and-pop companies, and other businesses are forced to pay their payroll taxes twice. This additional and unexpected expense can drive many of these companies out of business. These payroll fraud cases obscure the fact that most small businesses use payroll providers that are honest, meticulous, and trustworthy. The majority of payroll tax agents pay their clients' taxes accurately and on time, provide outstanding service, and help their clients with a range of complicated tax and accounting issues.…”