IRS Threat: The IRS, faced with a small but rapidly growing tax rebellion among small business owners, has put them on notice that if they refuse to withhold taxes from workers’ paychecks they might be prosecuted. The formal I.R.S. notice to tax lawyers and other professionals says the claim that only income from foreign sources, or employers based abroad, is subject to American income taxes "is refuted by the express and unambiguous terms" of the tax code. (NY Times 6/7/01)
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