Independent Contractor Compliance Blog - by Collabrus™

IRS Wants to Improve Information Sharing with States on Misclassified Workers

WASHINGTON DC-The IRS’ National Taxpayer Advocate, Nina E. Olson, wants to improve “state information sharing tracking metrics” on misclassified workers.
The Taxpayer Advocate’s report released to Congress, dated December 31, 2009, lists the type of information that is shared between the IRS and local state enforcement agencies.
The IRS receives:

The state income information
Sales information (e.g., from local […]

Government Crackdown on Misclassified Workers to Increase: The Perfect Independent Contractor Compliance Storm

The New York Times is now reporting about the government crack down on misclassified workers.
I’ve been reporting for the past couple years that the federal government, and most states, are cracking down harder on worker misclassifications. I’ve told you it is a politically correct way to increase revenue for any government agency that needs money […]

President Obama Signs an Order to Toughen Tax Compliance and Indicated Even Stronger Actions are Ahead.

WASHINGTON, DC - President Obama signed a presidential memorandum to stop companies who are delinquent in their taxes from collecting on government contracts. While signing the memorandum he stated, “(they are) gaming the system…We need to make sure every tax dollar we spend is going to address our nation’s urgent needs and to make a […]

Is the Recent Ninth Circuit Court Ruling Just the Tip of a Huge Independent Contractor Compliance Iceberg?

The recent Federal Ninth Circuit Court ruling holding the Americans with Disabilities Act and the Rehabilitation Act apply to independent contractors could just be the tip of a huge IC compliance iceberg.
Several synopses of the federal appeals court decision granting an independent contractor the right to sue a client company for discrimination reflect a deeper […]

Ninth Circuit Extends Disability Discrimination Protection Under the Rehabilitation Act of 1973 to Independent Contractors

Up until now, as a general rule, employees enjoyed a series of protections and benefits that independent contractors did not receive. In part, that accounts for IC’s receiving a higher rate of gross reimbursement for their services over their employee-counterparts. Independent contractors are not entitled to unemployment insurance benefits, wage and hour protections, workman’s compensation […]

What Happens if H.R. 3590 (the Health Care Bill) is Passed Into Law and the IRS Gets its Wish for 1099 Reporting for Corporations?

What’s next?  I’m predicting withholding on IC’s and the repeal of Safe Harbor…
For years there has been talk in Washington of “amending” the Safe Harbor Provision of the Internal Revenue Code and of requiring income tax withholding on payments to independent contractors (those who receive a 1099). Looks like the politicians are making a serious […]

News Flash: Waiting to Be Signed Into Law—The IRS Has Finally Gotten a Much Sought-after 1099 Reporting Requirement for Payments Made to Corporations.

Under today’s law, if you engage a corporation, or a consultant through his corporation, to perform a service for your company there is no requirement to issue a Form 1099 for the payments made to the corporation. That’s about to change!
H.R. 3590, Section 9006, the Heath Care Bill passed by the House of Representatives on […]

I’m Calling My Elected Representative!

An auditor is deep into your worker classification practices and you realize you really weren’t ready for this.  So you decide to call your elected politician and ask for reasons.  You ask your state assembly member, governor, US Congressman, or US Senator, “Please get the tax auditor off my back.”
In the over 30 years I […]

Colorado Jumps on the “Stricter Penalties for Misclassifying Workers” Bandwagon

DENVER, CO - The Colorado state legislature enacted the Misclassification of Employees as Independent Contractors Act this summer. The new law follows a national trend of making it more difficult for employers to misclassify their workers by creating a complaint process for workers who believe that they have been misclassified as independent contractors.
The Colorado law […]

Gearing Up for Future Growth, Are You Considering Independent Contractors and Contingent Workers?

Just as you are thinking of increasing the use of IC’s and contingent workers the government is gearing up its workforce of auditors and investigators to penalize you for misclassifications.
Want proof?
FACT:  In February of this year the Government Accounting Office (GAO) in Washington, DC issued a report to Congress criticizing the IRS for not being […]

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