IRS Worker Classification Amnesty!

OK, bottom line — did you read our blog post, “Employee vs. Independent Contractor” and think, uh-oh….I did not do that right!!  Well, the IRS is giving you a (rare) do-over.

If you are unsure about the legal differences between an employee and an independent contractor, then go ahead and read the link above.  (If you don’t even know what an independent contractor is…then you need to give us a call today!!)

Now, after reading that…think through your payroll.  Do you think that some people are classified incorrectly?  A new program will allow employers to get it right by making a minimal payment to cover past payroll tax obligations without interest or penalty.  This is a great chance to get everything squared up correctly without having to go through an audit (which most definitely would have a penalty!)

To be eligible for this “amnesty” program you must…

1. Consistently have treated workers in the past as nonemployees

2. Have filed all required Forms 1099 for the workers for the previous three years

3. Not currently be under audit by the IRS, the Dept. of Labor, or a state agency concerning the classification of these workers.  (In other words, if you are already under their thumb…it is too late to get out!)

If you think you could benefit from this program, give our office a call at 770-478-7424 and we can help you get the process started!

Latest Tax News

Please note that we will only post things that are from official sources and have been passed into law. We will not post any information about pending legislation.