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 […]
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 […]
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 […]
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 […]
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’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 […]
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 […]
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 […]
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 […]
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 […]
powered by WordPress
