IRS Deadline | by Rich Shavell

Dear Client: While I am certain most all of our clients do not have an issue with independent contractors (“IC”), you should know that a voluntary IRS program is closing at the end of this month. This is an area that both the IRS and Department of Labor have pursued. The fundamental issue is whether or not a worker is an employee or is an IC. The latter receives a 1099 and is not subjected to payroll taxes when paid (as is the employee). The IRS program permits more favorable terms that if the business is later audited and found to have employees who were treated as ICs. If you do believe there may be an issue and want to prospectively reclassify workers as employees – call us to discuss this. Taxpayers have until June 30 to apply for the temporary version of the IRS’s “Voluntary Classification Settlement Program” (VCSP). This version of the VCSP temporarily eased the eligibility requirements… read more →