Archive for August, 2007
I’m Receiving IRS Collection Notices – What should I do?
QUESTION:
I am receiving letters from the IRS. I don’t have enough money to pay the taxes that I owe. If I ignore them, will they go away?
ANSWER:
Thank you for your question. Ignoring the IRS will not make them go away. If anything, it might make them pursue you more aggressively because they are not [...]
Independent Contractor vs. Employee: What Happens if Your Classified an Employee Incorrectly?
One question I am asked in this type of situation is what can the IRS do if I have classified a worker as an independent contractor and it turns out that the IRS believes he is an employee.
Worst-case: the IRS may assess all of the employment related taxes against the employer for the [...]
Independent Contractor vs. Employee: Factor 7 – Intent
The final factor that we will consider in determining whether a worker is an employee or an independent contractor is the Intent of both the employer and the worker of the type of relationship they are creating.
This means – what did the employer believe his worker to be? If he considered his worker [...]
Employee vs. Independent Contractor: Factor 6 – Permanence
The sixth factor considered by the IRS in determining whether or not a worker is an independent contractor or an employee is the "Permanence" factor.
The nature of an independent contractor’s work is just that – it is independent. Meaning once that particular job has been completed the job is over and the independent [...]
How Do I Calculate the IRS Collection Statute of Limitations?
QUESTION:
I owe the IRS some money from several years ago. How do I calculate the end of the statute of limitations that the IRS has to be able to collect from me?
ANSWER:
Generally, the IRS has ten years to collect a tax liability. The ten-year clock begins to run from the date the taxes are assessed, [...]
Employee vs. Independent Contractor: Factor 5 – Integral Nature of Worker
The fifth factor considered by the IRS in determining whether a worker qualifies as an employee or an independent contractor is the integral nature of the worker to the work being performed. The main question being asked by the IRS in this instance is whether the tasks being performed by the worker are an [...]