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Text of Rev. Proc. 2008-25: Safe Harbor for Deducting Payroll Taxes by Accrual-Method Taxpayers (PDF)
Internal Revenue Service [IRS]
[Official Guidance] Mar. 12, 2008
Excerpt: Revenue Procedure 2008-25 provides a safe harbor method of accounting for taxpayers using an accrual method of accounting that incur FICA tax and FUTA tax (payroll tax) liabilities for compensation (including bonuses and vacation pay), and also provides procedures for taxpayers to obtain the automatic consent of the Commissioner of Internal Revenue to change to the safe harbor method of accounting.
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