In my seminars I tell participants that, “Over 70% of all employment tax audits find misclassified workers, resulting in a tax assessment.”
The reason the number is so high is because tax agencies rarely select a company for an employment tax audit unless they suspect there are misclassification errors. This means the auditor shows up the […]
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 […]
Just when you think you’ve heard it all-the IRS recently issued a public notice that using FORM 1099-OID can constitute a “Frivolous Tax Argument” punishable by jail time and big fines.
Washington DC-The IRS recently issued its 2010 list of “Frivolous Tax Arguments” that it doesn’t want to hear from any of us. One of the […]
Because there are a whole bucket of reports and taxes that must be filed and paid this time of year. Think of the next couple months as the Holiday Season for Tax People!
What’s happening?
Due by January 31, 2010
Forms W-2: You must furnish each employee a completed Form W-2, Wage and Tax Statement. You typically have […]
Why does providing items like a computer, email, telephone, office supplies, tools, software applications, workspace, etc. tend to make someone an employee?
Many would argue that since “direction and control” is the primary factor that as long as you let the consultant have freedom on how to do the work he/she is an independent contractor. […]
WASHINGTON - The IRS recently announced that, “Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, and these newly-eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months…”
This is an opportunity to help those who […]
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 […]
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 […]
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