One of the areas of focus of the IRS’s employment tax audit initiative is the issue of worker classification. The IRS has the ability to reclassify workers and hold employers accountable retroactively for past withholding taxes that would have been collected under the new classification. Employers have every right to worry that their policy of just calling workers independent contractors will be questioned, with the potential of huge tax liabilities.
A 20-factor test is one way that the IRS determines whether a worker is an employee or an independent contractor. This IRS test is often termed the “right-to-control” test because each factor is designed to evaluate who controls how work is performed. See our web page entitled ” Twenty Factors for Worker Classification” for an overview of those 20 factors.
Keep in mind that a worker does not have to meet all 20 criteria to be considered an employee or an independent contractor. Furthermore, no single factor is decisive in determining a worker’s status. The individual circumstances of each case will determine the weight that the IRS assigns the different factors.
To address questions of worker classification, lawyer Lawrence Brown applies insights gained in his former career as a trial attorney with the Department of Justice Tax Division. Clients from all corners of Texas and from locations throughout the United States look to the law firm for zealous and knowledgeable advocacy in the face of employment tax audits that zero in on worker classification issues.
Aggressive, Knowledgeable Advocacy on Behalf of Employers Nationwide
Lawrence Brown brings more than 20 years of experience to worker classification cases and other tax-related matters. In complex cases, he assembles a team of tax experts such as CPAs, auditors and former IRS agents to develop unique, appropriate strategies. Brown, PC, aggressively counters the IRS while working to obtain a definitive classification from the client as well as from the IRS.
Brown, PC, serves individuals and businesses in the Dallas-Ft. Worth Metroplex, statewide in Texas, and nationwide. Contact Lawrence Brown at 888-870-0025 to arrange a confidential consultation about your impending IRS audit or appeal.