http://www.collabrus.com/collabrus_blog Independent contractor (1099) compliance, professional payrolling, contingent workforce managed services Thu, 11 Mar 2010 17:52:45 +0000 http://backend.userland.com/rss092 en WASHINGTON - The Internal Revenue Service announced this week that interest rates for the calendar quarter beginning April 1, 2010 are: four (4) percent for overpayments for non corporations three (3) percent for overpayments in the case of a corporation; four (4) percent for underpayments for all; six (6) percent for large corporate underpayments; one ... http://www.collabrus.com/collabrus_blog/2010/03/11/irs-interest-rates-on-tax-liabilities-for-the-second-quarter-of-2010/ WASHINGTON DC- As I shared earlier this week, the IRS' National Taxpayer Advocate, Nina E. Olson, released her annual report to Congress, (required by federal statute) dated December 31, 2009, warning that (the IRS struggling because) it "is subject to three diverging forces..." Increased responsibility for non-core tax administration duties, Increasing demand ... http://www.collabrus.com/collabrus_blog/2010/03/09/the-irs-wants-more-money-from-congress-to-enforce-tax-laws/ 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 ... http://www.collabrus.com/collabrus_blog/2010/03/04/most-employment-tax-audits-find-misclassified-workers-learn-how-to-protect-your-company/ 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 ... http://www.collabrus.com/collabrus_blog/2010/03/02/irs-wants-to-improve-information-sharing-with-states-on-misclassified-workers/ 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 ... http://www.collabrus.com/collabrus_blog/2010/02/25/government-crackdown-on-misclassified-workers-to-increase-the-perfect-independent-contractor-compliance-storm/ 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 ... http://www.collabrus.com/collabrus_blog/2010/02/23/irs-publishes-2010-list-of-%e2%80%9cfrivolous-tax-arguments%e2%80%9d/ Do you have two minutes? Take this short test to see if you are misclassifying your consultants. Clients often ask us for the magic pill, the quick and simple way to know if a consultant is properly classified as an Independent Contractor (IC) or not. The truth is there is no ... http://www.collabrus.com/collabrus_blog/2010/02/18/quick-and-dirty-independent-contractor-quiz/ For each project extension do you draft up a new contract and go blissfully forward thinking you are protected? I've seen the "Status Drift" phenomenon pop up again and again over the years: The three month project that became another three month project that became a six month project that became ... http://www.collabrus.com/collabrus_blog/2010/02/16/status-drift-has-your-independent-contractor-been-performing-one-project-after-another-for-several-years/ In my seminars I often tell a story about the worker who insisted on being independent when his project was created. "He's a ‘1099' and has always worked as one," the hiring manager pleaded...   "He won't take the job unless we bring him on as an IC." Fast forward two years later. The ... http://www.collabrus.com/collabrus_blog/2010/02/11/beware-the-worker-who-insists-on-being-as-an-independent-contractor/ 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 ... http://www.collabrus.com/collabrus_blog/2010/02/09/it%e2%80%99s-february-2010-and-government-bureaucrats-and-tax-administrators-are-getting-excited-why/