Heightened IRS Scrutiny on Worker Misclassification and Tax Compliance
Preparing for Federal and State Information Sharing; Evaluating Risks and Benefits of the New IRS Compliance Program
Recording of a 110-minute CPE webinar with Q&A
This teleconference will provide corporate tax executives with a framework to evaluate the potential risks and benefits of the information-sharing and enforcement cooperation between the IRS, Department of Labor and the states and outline best practices for worker classification and payroll tax compliance decisions.
- IRS-Labor Department memorandum of understanding
- Information-sharing on possible misclassification of independent contractors
- Designed to curb fraudulent filings and reduce employment tax gap
- States on board: Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah, Washington
- Other states waiting to join: Hawaii, Illinois, Montana, New York
- IRS voluntary classification settlement program
- Material terms
- Applies to federal employment taxes only
- Must have consistently treated workers as non-employees, filed all 1099s
- Employers that voluntarily reclassify contractors as employees pay fee for part of past payroll obligations
- No tax liability for improper misclassification
- No audit for these workers for prior years, interest or penalties
- Extended statute of limitations to three years
- Possible pitfalls
- What if IRS doesn’t accept application?
- Will three-year limitations period apply to employment taxes generally?
- No alleviation of state taxes
- Questions about possible disclosure of submission to IRS
- Material terms
- Best practices for reviewing contractor vs. employee status
- Fact-specificity of each situation
- Possible variance in interpretations
The panel will review these and other key questions:
- Federal and state agency information-sharing: How much of a game-changer is this for corporate taxpayers? What states are on board now, and which are likely to join?
- The voluntary classification settlement program: What are the terms and benefits of the IRS deal? What are the potential risks and exposures?
- Evaluating employment status: What steps can corporate personnel take to make informed decisions?
Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.
Managing Director, Tax Services
He leads the firm’s Washington National Tax IRS Practice and Procedure group and advises clients on issues... | Read More
He leads the firm’s Washington National Tax IRS Practice and Procedure group and advises clients on issues including managing IRS exams and resolving controversies. He previously spent nine years with the IRS and worked in senior tax positions at MCI, Halliburton Co. and Atlas International Inc.Close
Accounting and Auditing Manager
Billups Company CPAs
He has more than 26 years of accounting experience, including more than two decades in public accounting. Much of his... | Read More
He has more than 26 years of accounting experience, including more than two decades in public accounting. Much of his client work has focused on tax and audit engagements for small business, non-profit and individual clients.Close
His practice involves tax controversy and litigation, and federal and state employment tax issues for business and... | Read More
His practice involves tax controversy and litigation, and federal and state employment tax issues for business and individual clients.Close
He has more than 20 years of experience in public accounting and private industry. His firm handles business tax... | Read More
He has more than 20 years of experience in public accounting and private industry. His firm handles business tax compliance and accounting matters.Close
Director of Employment Tax
He has more than 29 years of SALT experience and specializes in federal, state and local employment tax matters. He... | Read More
He has more than 29 years of SALT experience and specializes in federal, state and local employment tax matters. He works with multi-state companies on technical issues with payroll reporting and processing, unemployment tax and reporting requirements for independent contractors.Close