By Hale Sheppard When battling the IRS, knowledge is power. Nowhere is this more true than in worker-classification cases, where the IRS often seems hell-bent on treating all workers as employees, regardless of the facts. One bright spot for taxpayers under IRS scrutiny is an obscure provision, commonly known as Section 530, that grants taxpayers a … Continue reading Must Taxpayers File “Timely” Forms 1099 to Obtain Section 530 Relief? Unexpected Answers from a Recent Worker-Classification Case
Employment Tax: Yet Another Opportunity to Come Clean - Whether a worker is performing services as an employee or as an independent contractor depends on the facts and circumstances. This determination may be difficult for many companies and may lead to significant exposure. In order to facilitate voluntary resolution of potential worker classification issues and … Continue reading Employment Tax: Yet Another Opportunity to Come Clean –
By Hale Sheppard Despite the recent increase in online commerce, traditional methods of moving product, such as so-called “direct selling,” are alive and well. Indeed, according to a recent IRS study, direct selling is a significant industry, with annual sales of nearly $30 billion and more than 13 million salespersons in the United States alone. The … Continue reading Direct Sellers Hit by IRS Worker – Classification Audits
By Hale Sheppard The difference between what taxpayers should pay and what they actually pay the IRS is called the “tax gap.” A significant portion of the tax gap is attributable to non-compliance with employment tax laws, including worker misclassification. The IRS is currently conducting a three-year research project, which entails an additional 6,000 random … Continue reading Settlement Program for Worker-Classification Issues: Putting the Latest Employment Tax Offer into Perspective
On September 21, 2011, the IRS announced the launching of the Voluntary Classification Settlement Program. This program will provide employers with the ability to resolve past worker classification issues and achieve certainty under the tax law at a significantly reduced employment tax rate by voluntarily reclassifying their workers. Under the program, eligible employers can obtain … Continue reading MORE BREAKING NEWS: IRS Announces New Voluntary Worker Classification Settlement Program
On September 19, 2011, Commissioner Shulman and Secretary of Labor Solis signed a memorandum of understanding that will allow for the sharing of information intended to combat employee misclassification. The sharing of information and collaboration between the two agencies is intended to help reduce the incidence of misclassification, reduce the tax gap, and improve compliance … Continue reading THE INK IS STILL WET: IRS, DEPARTMENT OF LABOR AND STATES TEAM TOGETHER -SHARING OF INFORMATION ON WORKER CLASSIFICATION
According to the Department of Homeland Security, the federal government has started its crackdown on businesses suspected of hiring illegal immigrants. Federal agents are expected to visit companies to verify employees' identity and eligibility for employment in the United States. Documentation, such as Forms I-9 will be reviewed. ICE is not expected to name the … Continue reading Another Player in the Worker Classification Arena?