CS-08-116 - Cash Economy Web-based Survey; CS-08-117 - Survey of Statistical Information Services Customers

VII. Appendices

Appendix 1

Questionnaire for Previous Focus Group Participants: Proposals for Improving Small Business/Self-Employed Tax Compliance

Please consider the following list of proposals the IRS CLD has received from individuals and business people for improving small business/self-employed federal tax compliance.

Score each proposal on a scale of 1 through 5, where 1 is worst (you believe it would be ineffective) and 5 is best (you believe it would be very effective).

1. Institute backup withholding on payments to taxpayers who have demonstrated “substantial noncompliance.” _____

2. Register and identify unenrolled (uncertified) return preparers, and strengthen standards. _____

3. Making collection alternatives, such as partial payment installment agreements and improved access to the Offer in Compromise (OIC) program more readily available to taxpayers who can pay some but not all of their liabilities. _____

4. Offering IRS workshops for sole proprietorship taxpayers upon receipt of their Employer Identification Numbers (EINs). _____

5. Requiring information reporting for service payments to corporate independent contractors. _____

6. Increasing IRS use of information from states and other federal agencies for compliance verification, (i.e. sales tax, ABC board, motor fuel, licensing, etc). _____

7. Requiring employers to verify each new employee’s Social Security Number (SSN) with the Social Security Agency (SSA). _____

8. Requiring written notification to independent contractors of their tax obligations and rights. _____

9. Increasing penalties for failure to file information returns. _____

10. Simplifying worker classification rules. _____

11. Expanding tip reporting programs to service providers beyond the food and beverage industry – to hairdressers, cabbies, bellhops, valets, concierges, etc. _____

12. Requiring reporting of ratios of cash to credit card receipts – would supplement credit card reporting requirement. _____

13. Increasing priority of IRS examination regarding compliance with Form 1099-Misc reporting requirements. _____

14. Making repeated failure to file a tax return a felony. _____

15. Revising Schedule C to include a line item for “Gross Receipts from Cash” ____

16. Requiring tax practitioners to tell their clients that cash is taxable income, even if they do not receive a Form 1099 because their income was less than $600. _____.

The Paperwork Reduction Act requires that the IRS display an OMB control number on all public information requests. The OMB Control Number for this questionnaire is 1545-1432. Also, if you have any comments regarding the time estimates associated with this questionnaire, or suggestions on making this process simpler, please write to the:

Internal Revenue Service

    Tax Products Coordinating Committee

    SE:W:CAR:MP:T:T:SP

    1111 Constitution Ave. NW, Washington, DC  20224

Appendix 2

Questions for Cash Economy Web-based Survey: Survey Paid Tax Preparers for Their Input on Rating Education Strategies and Procedural and Legislative Initiatives for Improving Small Business/Self-Employed Tax Compliance in the Cash Economy

Appendix 3

Small Business/Self-Employed Example Web-based Survey Web Site Invitation with Link

Web-Based Cash Economy Survey

Click to Participate!

Cash Economy Web Survey – Understanding Tax-Related Behaviors in the Cash Economy

IRS Small Business/Self-Employed Research 2